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Demand for £2m unspent hardship fund to go to poverty-stricken tenants

North East MSP Mercedes Villalba. Image: Scottish Parliament
North East MSP Mercedes Villalba. Image: Scottish Parliament

Millions of pounds in unspent funding set aside for tenants must be used to help poverty-stricken renters, according to a North East MSP.

Official figures show more than 20% of a £10 million Tenant Grant Fund launched by the Scottish Government has not been allocated.

A rent freeze is due to end on March 31, leading to calls for unused cash to go to those struggling most.

Tayside among highest underspends

Aberdeen was among the areas with an underspend of more than a third of their allocated funding.

Of the £196,500 handed to the city, more than 42% has still not been paid out.

Aberdeenshire was given £293,000 and has spent almost the full amount, while Moray has been left with just over 5% of its £87,000 share.

A child playing on a swing. Image: Supplied

Labour MSP Mercedes Villalba wants ministers to commit to extending the rent freeze until a promised national system of rent controls is in place.

‘No excuse not to act’

The North East regional politician says this would protect those facing in-work poverty and hardship during the ongoing cost-of-living crisis.

She said: “The ban on rent increases must remain in place until the Scottish Government’s permanent system of rental control is introduced.

“However, in the meantime, the unspent millions of pounds in the Tenant Grant Fund must be used pro-actively to support tenants already facing real hardship.

“There’s still time for the Scottish Government to change course and extend the rent freeze until the promised national system of rent controls is in place

“However, there’s also no excuse whatsoever for not working to deliver this additional support to renters while the rent freeze remains in place.”

The Scottish Government was approached for comment.

Ministers says councils have advice

Tenants’ Rights Minister Patrick Harvie said guidance has been issued to all local authorities on the Tenant Grant Fund “to ensure that these vital funds are distributed effectively to those who are struggling the most”.

As of September, around £7.6 million had been provided in financial support.

Patrick Harvie. Image: PA

Mr Harvie said emergency legislation is also providing immediate protection to “many tenants who may otherwise have face in-tenancy rent increases during the ongoing cost of living crisis”.

He added: “The unprecedented economic challenges are continuing to have an acute impact on tenants.

“As I have made clear, emerging evidence makes it likely that some provisions in this Act, including the private sector rent cap, will be required after March 31.

“We are working to deliver a New Deal for Tenants to raise quality and standards in renting in the longer term.”