London Daily

Focus on the big picture.
Tuesday, Jun 30, 2026

'Millions face hardship' as government support ends

'Millions face hardship' as government support ends

The end of a range of government support schemes could leave millions of people facing hardship, think tanks and political groups have warned.

Mortgage holidays and jobs furloughing are to end on Saturday, with other support measures starting.

But there are still gaps in support that need filling, some organisations have said.

The Treasury said it had put in place a number of generous support schemes for individuals and businesses.

The mortgage holiday scheme introduced at the start of the Covid-19 crisis ends on Saturday as does the job furlough scheme, which is being replaced by the Job Support Scheme.

It will leave a fifth of mortgage holders - around 1.6 million households - worried about paying their mortgage over the next three months, according to the Joseph Rowntree Foundation.

The poverty campaign charity said: "There is a real risk that mortgage-holders on low incomes will be pulled into poverty and hardship."

It said 890,000 working households with a mortgage expect to see a drop in earnings over the next month, but 85% of them - 750,000 households - aren't eligible for any government support with their housing costs.

"It's not right that during a time of huge uncertainty, many households are discovering that they are excluded from the only lifeline that could help meet their housing costs," said Darren Baxter, policy and partnerships manager at the charity.

The Joseph Rowntree Foundation wants the Support for Mortgage Interest payment to be reformed to help people who lose their jobs to keep their homes as they weather the coronavirus storm.

Self-employed 'face double hit'


Self-employed homeowners could face a double hit as their grants are reduced, the Labour party said.

"Self-employed homeowners are facing a perfect storm because the government has decided to abandon them just as we head into the winter," said shadow chancellor Anneliese Dodds.

"There's still time for the government to stop a bleak winter for Britain's self-employed workers.

"It must remove the mortgage cliff edge, fix the gaps in its income support schemes, and help people defer the cost of interest payments."

From November, self-employed people will be able to apply for a third grant under the Self-Employment Income Support Scheme (SEISS) to cover the next three months, worth 40% of their pre-virus trading profits.

But that figure is down from the 80% offered during the first grant and 70% during the second application period.



Renters 'hit'


People renting their home are more likely to have fallen behind with their housing costs than mortgagers, according to the Resolution Foundation, which campaigns on living standards.

Its research suggests nearly one-in-eight private renters and more than one-in-six social renters are currently unable to cover their housing costs in full.

"Renters are being particularly badly hit," said Lindsay Judge, research director at the Resolution Foundation.

"They are much more likely to have lost their jobs and significant numbers are only managing by cutting other expenditures, drawing down on savings or getting into debt in order to meet their rent."

She called on policymakers to ensure the social security system supports struggling families effectively over the coming months and take urgent action to avoid an increase in homelessness.

"But landlords might also need to recognise that as household incomes fall, rents are more likely to need to go down than up," she added.

Landlords ask for help


Landlords, however, have called on the government to give the sector extra help to protect those who are renting.

The National Residential Landlords Association warned that 300,000 renters could be at risk of losing their jobs as the furlough scheme closes.

It said renters under the age of 35 will face the brunt of the crisis as those who find themselves on benefits will only be able to claim for a room in a shared house.

"With rates of Covid-19 rising, we need to do everything possible to sustain tenancies," said Ben Beadle, chief executive of the NRLA.

"The government needs urgently to step in and fund renters who are struggling as a result of the pandemic."

Job Support Scheme


The Treasury said the new Job Support Scheme which starts on Sunday, combined with the Job Retention Bonus, will cover at least 95% of the total employment costs for average previously furloughed employee until February.

"The Job Support Scheme will continue to protect jobs throughout the difficult months ahead and is part of our comprehensive Plan for Jobs," said Chancellor of the Exchequer, Rishi Sunak.

The Treasury added: "The JSS and JRB are just one part of our generous package of measures, that includes the extended business grants and Self-Employed Income Support Schemes announced last week, which will continue to support businesses and livelihoods across the country over the winter months."

Newsletter

Related Articles

0:00
0:00
Close
UK Crime and Policing Act 2026 Comes into Force with New Justice System Reforms
UK Prime Minister Hosts NATO Secretary General Mark Rutte for Security Talks at Downing Street
UK Tightens Oversight of Emissions Trading Scheme Through New Ministerial Directions
UK Issues Statement at UN Security Council on Violence in the West Bank
UK Environment Agency Clears Illegal Waste Site in West Yorkshire After Court Action
UK Resident Sentenced for Fraudulently Claiming £30,000 in Covid Business Loans
UK Launches Taskforce to Help Young People Claim Dormant Child Trust Fund Savings
UK Gambling Commission Fines Betfred Operator Petfre Gibraltar £900,000 Over Social Responsibility Failures
UK Appoints Lord Collins as Global Envoy for LGBT+ Rights
UK Expands Detention Capacity to Support Removal of Foreign Criminals and Failed Asylum Seekers
UK Resident Doctors End Strike Action After Accepting Government Pay Deal
UK Tightens Sentencing for Domestic Killings with 25-Year Starting Point for Murder of Partners
UK to Build at Least Six New Royal Navy Warships Under Expanded Defence Programme
UK Government Unveils £5 Billion Defence Investment Plan Focused on Drones and Autonomous Warfare Systems
UK Economy Records 0.6% First Quarter Growth as Services and Manufacturing Drive Steady Expansion
Welsh Government Unveils New Agricultural Support Plan Focused on Sustainability and Rural Growth
UK Teacher Recruitment Shortfalls Continue in Science and STEM Subjects
Police Scotland Expands Cybercrime Investigations Amid Rising Digital Fraud
UK Universities Warn of Risk to International Student Numbers Amid Visa Changes
UK Defence Ministry Pivots Toward Greater Domestic Military Procurement
UK Launches National Rail Review After Repeated Service Disruptions
Northern Ireland Assembly Debates Long-Term Funding Settlement for Public Services
UK Accelerates Approval of North Sea Offshore Wind Projects to Expand Energy Capacity
UK Retail Sales Fall as Households Cut Discretionary Spending in June
UK Expands Border Intelligence Cooperation with France and Belgium to Target Smuggling Networks
Scottish Government Faces Pressure Over Delays in Major Infrastructure and Transport Projects
UK Launches Multi-Billion-Pound Artificial Intelligence Infrastructure Investment Fund
National Health Service Warns of Continued Emergency Department Strain Across England
Bank of England Signals Interest Rate Hold as Wage Growth Keeps Inflation Elevated
UK Sets Emergency Fiscal Strategy as Inflation Pressures and Weak Manufacturing Growth Persist
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
Cambridge South Railway Station Opens After £250 Million Investment
UK Moves to Close Import Duty Loophole for Small Parcels by 2028
UK Invests £85 Million in Projects to Transform Obesity Care
Berkeley Group Warns London Housebuilding Falling Far Short of Demand
UK Council Tax Arrears Rise to £9.3 Billion Amid Ongoing Household Financial Strain
Markets Watch Political Transition as Andy Burnham Emerges as Labour Leadership Frontrunner
Extreme Heat Raises Long-Term Risks for UK Inflation and Productivity, Analysts Warn
UK Health Alerts Extended as Record June Heatwave Grips England
UK Parliament Faces High-Stakes Week of Spending, Security and Industrial Legislation
UK Repeals Vagrancy Act Ending Criminalisation of Rough Sleeping in England and Wales
GB News Pundit Charged With Fraud Over Alleged Conduct as Former Labour Adviser
Reform UK Gains Parliamentary Visibility in First Senedd Opposition Appearance
Metropolitan Police Arrest Man on Suspicion of Attempted Murder After London Car Incident
Ocado Chief Executive Tim Steiner Faces Scrutiny Over £100 Million Remuneration Package
British Chambers of Commerce Downgrades UK Growth Outlook to 0.9 Percent for 2026
×