Debt charity StepChange has claimed that the newly announced Renters’ Reform Bill fails to protect financially vulnerable tenants.

A recent study conducted by MoneyTransfers shed light on an alarming statistic: UK renters are nearly five times more susceptible to financial vulnerability than other groups. This revelation underscores the pressing need for comprehensive support within the rental sector.

StepChange has found that a staggering one in six tenants are resorting to credit as a means of making ends meet until their next paycheck—a troubling consequence of the current state of affairs.

Richard Lane, the Director of External Affairs at StepChange, expressed his views on the Renters' Reform Bill, acknowledging its positive provisions aimed at establishing a fairer and more secure environment for private renters. He commended the bill's intentions to abolish no-fault evictions and enhance housing standards in the private rented sector (PRS). However, Lane emphasized the imperative of ensuring that financially vulnerable PRS tenants are not overlooked.

Highlighting the findings of StepChange's recent polling, Lane stated, "Our latest polling shows there are one in six PRS tenants (1.2 million people) turning to credit to make it through to payday." These individuals, already grappling with the exorbitant cost of living and years of stagnant wages, find it increasingly arduous to achieve financial resilience when confronted with unforeseen circumstances leading to income loss. Disturbingly, if a PRS renter experiencing financial difficulty falls behind on rent payments, they face a dearth of safeguards to prevent homelessness, especially when compared to social housing or mortgage holders.

As the government proceeds with its plans to revamp the rental sector, Lane stressed the necessity of extending support to PRS tenants facing financial hardship. He urged for the eradication of "hair-trigger" evictions for households in rent arrears and advocated for the implementation of affordable repayment plans, coupled with readily accessible advice for struggling tenants.

Moreover, Lane urged the government to consider the broader issue of rent affordability in the PRS. Housing benefit and discretionary support, in their current state, inadequately address the needs of financially vulnerable tenants, leaving them susceptible to falling into problematic debt solely due to the burden of essential housing costs.