5. To ask the First Minister how much the tenant hardship loan fund has paid out to date to support tenants who are struggling with rent arrears. (S5F-04852)

We opened the £10 million tenant hardship loan fund on 7 December to offer interest-free loans to support tenants in managing and preventing rent arrears. Of course, the loan is only one part of the support that is available to tenants, and other, perhaps more suitable, options are available, such as housing benefit and discretionary housing payments.

The loan fund is part of wider action to support tenants, alongside extended notice periods, the ban on enforcement action in level 3 and 4 areas, the introduction of private landlord pre-action requirements and increases to discretionary housing payments.

As of 15 February, the loan fund had paid out or offered more than £200,000 to 73 tenants, but I understand that a further 357 applications are being processed.

I have been contacted by a local letting agent on behalf of its clients, who appear to be struggling to access the tenant hardship loan fund. To date, out of numerous applications, only one has had a positive outcome. I have been informed that there are two main issues. The first is the inability to check whether a tenant’s application has been accepted or rejected. Secondly, in addition to the inability to follow the progress of an application, when one has been rejected, it is not clear why that is the case.

Does the First Minister agree that the tenant hardship loan fund is an important way to help tenants who are struggling with rent arrears and that, when an application is rejected, an explanation should be given to the tenant outlining why that is the case and they should be signposted to other support services, should that be necessary?

The First Minister:

I agree with that. That is provided, and it certainly should be. Tenants are given contact details of the loans administrator and a unique application number when they submit an application, so that they can check the progress of their application. A range of information and support is also provided for applicants and, in cases where a loan is turned down, information is supplied on alternative sources of financial support.

I am sorry that Stuart McMillan’s constituents have not had successful applications. However, most rejected applications are due to unaffordability, which is why I stress, again, that, although the fund is an important source of additional help, there might be longer-term and more sustainable forms of support that are more suitable for people facing arrears.