London Daily

Focus on the big picture.
Friday, Jun 12, 2026

Liberal Democrats: Give struggling homeowners £300 a month

Liberal Democrats: Give struggling homeowners £300 a month

Homeowners struggling to pay their mortgages amid rising interest rates should be able to apply for a £300-a-month grant, the Lib Dems have said.

Under the party's plan, the grant would be available to people whose mortgage payments had risen by more than 10%.

It could be paid for by reversing tax cuts for banks, the party has said.

Sir Ed Davey said: "No family should face losing their home because of the Conservative's reckless mismanagement of the economy."

The Liberal Democrat leader will give a speech in London on Sunday, after the death of Queen Elizabeth II led to his party's annual conference being cancelled in September.

He will attack the Conservatives for planning tax rises and cuts to public services, likening ministers to "bank robbers asking for a loan to buy the getaway car".

Chancellor Jeremy Hunt is due to deliver an autumn budget on 17 November, but has already warned of "eye-wateringly difficult decisions".

The decision to hold a budget was taken after the tax plans of Liz Truss sparked turmoil in financial markets.

Following a backlash, she was forced to sack her chancellor and reverse her proposals. She later resigned as prime minister, to be replaced by Rishi Sunak.

Sir Ed argued that Conservative actions had "added hundreds [of pounds] to people's monthly mortgages".

"The government has a responsibility to step in and fix their own mess, by providing grants to those struggling to afford eye-watering mortgage hikes."

Sir Ed will also use his speech to attack Mr Sunak's re-appointment of Suella Braverman as home secretary, less than a week after she had to resign for breaking data security rules.

"Johnson-like integrity, Johnson-like judgement - Nadhim Zahawi said it was time for Boris 2.0. With Rishi Sunak, it looks like he got his wish," he is expected to say.

Looking ahead to the Liberal Democrats' general election prospects, Sir Ed will argue that his party is well-positioned to win seats in traditional Conservative heartlands, dubbed "the blue wall".

In the past year, the party has had success beating the Tories in by-elections in Shropshire, Buckinghamshire and Devon. However it remains one of the smaller parties at Westminster with just 14 MPs.

Sir Ed will argue that his party is well placed to win seats in traditional Tory heartlands


Under the Liberal Democrat's mortgage protection fund, grants would be offered to homeowners to protect them from losing their homes or falling into arrears.

The party estimates this would cost £3bn and says it could be paid for by reversing cuts to the bank levy and bank surcharge.

The average interest rate charged by mortgage lenders has hit its highest level for 14 years.

A homeowner is considered to be in arrears if they miss two or more months' repayments, However, lenders are required to make reasonable attempts to reach an agreement with those struggling to meet their payments.

Newsletter

Related Articles

0:00
0:00
Close
NHS Trust Secures Funding for AI Tool to Detect Heart Failure Earlier
Government Unveils £4.5 Billion Investment Plan for Walking and Cycling Infrastructure
Nationwide Reports UK House Prices Falling as Borrowing Costs Remain Elevated
Centre for Social Justice Says Two Million Britons Are Using Illegal Loan Sharks
UK Carmakers Warn EU Local Content Rules Could Damage British Manufacturing
UK Government Imposes Emergency Ban on Seven Potent Synthetic Opioids
Royal Navy Completes Major North Atlantic Anti-Submarine Exercise Off Norway
NHS Figures Show Nearly 3,000 Patients a Day Receiving Care in Hospital Corridors
CBI Cuts UK Growth Forecast as Middle East Tensions Drive Inflation Risks Higher
Dan Jarvis Appointed UK Defence Secretary Following Major Government Reshuffle
University College London Study Links Physical Punishment to Higher Risk of Bullying
East Midlands Railway Unveils First Refurbished Train in £60 Million Modernization Programme
RNLI Issues National Water Safety Appeal Ahead of Expected Heatwave
Climate Change Raises Subsidence Risks for Millions of Homes Across Southeast England
Manchester Advances Plans for Underground Piccadilly Station With £1 Million Funding Commitment
Anti-Immigration Violence Continues in Belfast Amid Heightened Security Concerns
UK Law Locks Great British Railways Into Public Ownership
Office for National Statistics Adopts Supermarket Checkout Data for Inflation Measurement
Applied Atomics Launches With $500 Million Space Infrastructure Order Book
BYD Plans Nationwide Rollout of Ultra-Fast EV Charging Network
UK House Prices Unexpectedly Fall in May
CBI Warns UK Growth Is Becoming Increasingly Dependent on Public Spending
Makerfield By-Election Fuels Speculation Over Labour’s Future Leadership
Britain Declines to Join EU SAFE Defence Fund
UK Unveils 2040 Emissions Target Despite Strong Political Opposition
Government Orders Full Review of Palantir’s NHS Data Contract
UK Borrowing Costs Climb as Markets Price in Further Bank of England Rate Rises
Resident Doctors Confirm Five-Day NHS Strike Across England
Violent Anti-Immigrant Riots in Belfast Spark Political and Diplomatic Tensions
United Kingdom Sees Recovery in Horizon Europe Research Funding Share to 9.3 Percent
UK Inflation Holds at 2.8 Percent as Office for Budget Responsibility Flags Persistent Price Pressures
United Kingdom Launches National Anti-Fraud Framework to Combat Rising Pension Scam Losses
United Kingdom Expands Sanctions on Israeli Groups While Funding Palestinian Authority Salaries and Gaza Mine Clearance
United Kingdom Issues Three-Month Ultimatum to Major Technology Firms Over Child Online Safety Controls
United Kingdom Government Moves Toward Blanket Social Media Ban for Children Under Sixteen
Widespread Anti-Immigration Rioting Erupts Across Belfast After Knife Attack Linked to Asylum Seeker
Farmers Warn of Crop Losses Following Months of Unseasonal Rainfall
Civil Aviation Authority Launches Review of Regional Airport Operations
Met Office Issues Heat-Health Alert Across Parts of England
National Grid Introduces New Measures to Protect Winter Energy Supply
Northern England Rail Upgrades Receive Additional Government Funding
Wales Advances Green Hydrogen Strategy to Decarbonize Heavy Industry
UK Expands Recruitment Incentives to Address Shortage of STEM Teachers
High Court Opens Door to Climate Liability Claims Against Major Industrial Emitters
Police Service of Northern Ireland Investigates Major Personnel Data Breach
Defense Ministry Overhauls Procurement System to Accelerate AUKUS Submarine Program
Net Migration Remains Above Government Expectations, New Data Shows
UK and Scottish Governments Agree Framework for Expanded North Sea Wind Development
UK Treasury Launches New Tax Incentives to Boost AI and Semiconductor Investment
Bank of England Signals Continued Caution on Interest Rate Cuts
×