Rishi Sunak’s new furlough scheme announced on Friday is unlikely to help tenants facing financial hardship in affected areas, according to the National Residential Landlords Association (NRLA).

The chancellor unveiled a multibillion-pound local furlough scheme for those who work in pubs, restaurants and other businesses forced to close as the country prepares itself for a winter of local coronavirus lockdowns.

Tighter restrictions are planned for northern England, with Boris Johnson expected to make an announcement later today, alongside a new three-tier lockdown system.

But Ben Beadle, chief executive of the NRLA, argues that local furlough payments “are not going to be enough to help renters who are already behind with their rent because of the impact of Covid”.

From 1 November, workers in outlets forced to close in England will be given 66% of their usual wages by the state up to a maximum of £2,100 per month.

Employers will not be required to contribute towards wages and only asked to cover national insurance and pension contributions.

But Beadle maintains that the scheme, which will last six months, is simply not enough for struggling renters.

He commented: “The impact of local lockdowns makes it even more important that the chancellor acts without further delay to bring in a package that will help tenants and landlords to sustain tenancies.

“Landlords cannot be expected to subsidise tenants who are struggling to meet arrears indefinitely.

“The government should develop tenant hardship loans such as those in Scotland and Wales to support renters in England who have built arrears since lockdown began in March but are not in receipt of benefits.

“There also needs to be extra support for those who rely on benefits to meet their housing costs.”

To help alleviate mounting pressure in the PRS, the NRLA is calling for the introduction a hardship loan scheme to cover rent arrears built up since the pandemic started.

In addition, it wants government top-up payments for existing mechanisms such as the Hardship Fund or Discretionary Housing Payments, as well as a commitment from government to keep the Local Housing Allowance at the 30^th percentile after March next year and preferably ensure that it covers average rents in any given area.