Mar 25, 2009
Lib Dems Condemn RBC as Wrong to Follow Inadequate Government Rescue Scheme
Announced by the Government in November last year, the Mortgage Rescue Scheme was designed to help those most deeply affected by the ongoing recession. However, limits imposed by the Government’s own ministers mean that only 6,000 homes across the UK are protected by the plans, meaning that many in Reading will be left without support.
863 repossession claims, 66% higher than the South East average, were issued in Reading in 2008, whilst many more are expected in 2009 as the recession takes hold. Under current Government limits, the scheme will mean that only 35 (4%) of these local claims would be covered or offered any support.
Under the flagship scheme, only 1 in 25 households facing repossession will be able to receive any help or assistance, but despite this Reading Borough Council’s Labour councillors have decided to give this scheme number 1 priority in its ‘Credit Crunch Action Plan’.
Local Liberal Democrat spokesperson for Reading East, Gareth Epps said:
“Although the Mortgage Rescue Scheme was launched with a great fanfare by the Government in the autumn, this scheme is totally inadequate and simply cannot deal with the reality that many local residents are facing.
This council cannot continue to blindly adopt whatever the latest and disastrous Government policy is that comes along. The people of Reading deserve much better than slapdash Labour policy schemes.
The threat of repossession is a truly terrifying prospect and it is facing far too many people in Reading. I’m regularly meeting residents who are being threatened with the loss of their home – and they know that the Government scheme as it stands is useless. The Mortgage Rescue Scheme must be effectively expanded urgently or else thousands of local residents could face being thrown onto the streets.”
Editor’s Notes:
Information on the Government’s Mortgage Rescue Scheme can be found on the Government’s Communities website
In 2008, 142,000 repossession claims were issued by the courts. Whilst most of these claims did not lead to homes being repossessed, this figure indicates the number of households that are in serious mortgage arrears and therefore would benefit from this scheme. However, the scheme is being restricted to only 6,000 households by the Government. In effect, only 4% of those who are vulnerable to repossession will be assisted by this scheme.
