London Daily

Focus on the big picture.
Saturday, Jul 04, 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
UK Government Consults International Partners on Maritime Trade Security and Energy Market Stability
Rare Revolutionary-Era Documents Discovered by UK Archives and Undergoing Authentication
UK Consumer Confidence Remains Deep in Negative Territory as Household Spending Stays Cautious
Transport for London Warns of Severe Disruption as Major Events Converge in Central London
NHS and Social Care Sectors Face Ongoing Recruitment Shortages Amid Persistent Workforce Gaps
Rising Energy Costs Drive Price Pressures Across UK Retail and Service Sectors
Competition and Markets Authority Expands Review of Artificial Intelligence Impact on UK Media Markets
UK Parliamentary Committees Intensify Scrutiny of National Security and Industrial Policy Legislation
Bank of England Faces Persistent Inflation Pressure as Rate Cut Expectations Fade
UK Public Finances Under Pressure as Borrowing Exceeds Forecast and Debt Nears 95% of GDP
Major Police Deployment Across Central London as Mass Demonstrations and Pride Parade Converge
Large-Scale Police Dispersal Powers Activated in Liverpool Ahead of Anti-Immigration Protests and Counter-Demonstrations
Luxury bags take over the World Cup: style, status symbol, or just showing off?
National Productivity Institute Highlights Weak Business Investment Outside Southern England
UK High Court Orders Reassessment of Environmental Impact in Major Highway Project
UK Cyber Security Centre Warns of Rising Threat From State-Sponsored Digital Espionage
UK Education Secretary Launches National Reform of Apprenticeships and Vocational Training
Financial Conduct Authority Tightens Climate Risk Disclosure Requirements for Listed Firms
Rail Union Suspends Planned Strike Action to Enter Formal Negotiations With Operators
Northern Ireland Businesses Seek Clarity Over Post-Brexit Trade Rules
Welsh Government Launches Regional Growth Plan Targeting Transport and Digital Infrastructure
North Sea Wind Sector Attracts £5 Billion Investment Amid Expansion of Offshore Capacity
Scotland and UK Governments Establish New Framework for Coordinated Investment in Energy and Infrastructure
UK Government Launches Major Immigration and Border Policy Overhaul Review
Bank of England Signals Interest Rates to Remain Elevated Despite Easing Inflation Pressures
National Health Service Warns of Severe Winter Capacity Strain Across Hospital Trusts
Chancellor Orders Urgent Treasury Review Amid Concerns Over Structural Public Finance Gap
Prime Minister Unveils Sweeping Legislative Programme Focused on Housing, Health Service Reform and State Energy Plan
UK Parliamentary Committee Launches Inquiry Into Falling Primary School Rolls and Public Service Impact
UK House of Lords Debates Electoral Commission Powers and Political Finance Reform
UK Parliament Considers Expanding Carbon Rules to International Aviation and Shipping Emissions
UK Traffic Commissioner Revokes Hampshire Haulage Operator Licence Over Regulatory Failures
UK Parliament Examines Risks in Public Contracts Awarded to Technology Firm Palantir
UK Competition Watchdog Moves Toward More Flexible Merger Rules to Support Efficiency and Growth
UK Government Seeks Approval for £1.15 Trillion Public Spending Plan Amid Scrutiny Over Department Budgets
UK Parliament Debates Sweeping National Security and Steel Industry Nationalisation Bills
UK Government Issues Formal Apology for Historic Forced Adoption Practices and Announces £4 Million Support Scheme
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
×