The government’s £65m package to support renters in arrears does not match the scale of the problem, landlords and charities have warned.

The funding announced by the Department for Levelling Up, Housing and Communities this weekend, will be given to councils in England to support low-income households who are behind on their rent.

However, the National Residential Landlords Association, Citizens Advice and the Joseph Rowntree Foundation’s estimates for the true level of rent debt range between £300m and £440m.

NRLA policy director Chris Norris says: “We welcome the announcement of this funding and urge local authorities to target it at those tenants most struggling with Covid rent debts.

“It is great news that those households worst hit by Covid-related arrears may be able to access financial support. 

“However, £65 million does not fully reflect the scale of the problem.

“NRLA analysis has put the figure of Covid rent debts at over £300 million.

“With warnings that rent debts could pose a risk to the economic recovery and the government admitting that many landlords are highly vulnerable to arrears the Chancellor must go further.”

Citizens Advice director of policy Matt Upton says: “The pandemic has pushed hundreds of thousands of people behind on their rent, owing at least £360m, while the numbers of people seeking our help related to homelessness has increased significantly in recent months. 

“This funding is good news and cannot come soon enough for those who need it, but the scale of the challenge facing renters means it is simply not enough.”

Crisis chief executive Jon Sparkes says: “We of course welcome this funding that should help keep some of those most at risk of homelessness off the streets this winter.

“It is now vital councils use this funding to help people most at risk of losing their home.

“But with almost a million households across the UK in rent arrears and the cost of living rising rapidly, it is impossible for this funding to meet the demand we face.

“To prevent homelessness in the first place, we desperately need the UK government to ensure that housing benefit covers the true cost of renting by unfreezing the Local Housing Allowance.”

Joseph Rowntree Foundation deputy director of policy and partnerships Katie Schmuecker says: “The build-up of rent arrears among households on low incomes is a huge problem and one of the clearest signs of the unequal impact the pandemic has had, so we are pleased to see the government respond to this issue.

“The funding will be vital in preventing people from going through the traumatic experience of being evicted and potentially becoming homeless.

“£65m has been announced but we estimate that the group this support is targeted at has built up around £440m of rent arrears.

“With the cost of living continuing to rise sharply and households on low incomes still reeling from the huge overnight cut to Universal Credit, without further action this problem is only likely to grow despite the support announced today.

“Until we address the fundamental inadequacy of social security support, we will continue to see families at the sharp end swept into poverty and homelessness. We urge the government to reinstate the £20 in Universal Credit at next week’s Budget, as well as relinking housing benefit to local rents.”

Generation Rent director Alicia Kennedy says: “Hundreds of thousands of private renters who lost income during the pandemic have fallen into arrears and are still living with the dread that they will be made homeless.

“Generation Rent has long warned the government of the devastating effect that rent debt has on people’s lives, so we welcome this new funding and its recognition of how hard private renters have been hit in the past 18 months.

“It’s a significant step forward that will help keep people in their homes when they would otherwise have been evicted.

“But with rents rising and Universal Credit cut, we fear it won’t be enough to prevent families hitting crisis point.”

Shelter chief executive Polly Neate adds: “People have struggled to keep their heads above water, with the protections from the eviction ban and furlough now ended, the threat of homelessness is very real.

“With winter approaching, the government is absolutely right to act to keep people safe in their homes and prevent a wave of evictions and homelessness. 

“For those who can access it, this funding will be a lifeline.”