Chancellor urged to use budget to tackle rent debt crisis
February 18, 2021, 12:11 pm

Chancellor urged to use budget to tackle rent debt crisis

The joint statement from charities and other organisations involved in the housing sector said at least half a million private renters are in arrears due to the economic impact of Covid-19.

Housing charities and groups that represent landlords and renters fear risk of homelessness due to economic impact of Covid

The chancellor must take action to tackle the rent debt crisis in the forthcoming budget, housing charities and groups representing landlords and renters have said.

In a joint statement released by organisations including the Big Issue, Crisis, Shelter, Citizens Advice, Joseph Rowntree Foundation and Nationwide Building Society, Rishi Sunak was called upon to act now to avoid renters “being scarred by debts they have no hope of clearing and a wave of people having to leave their homes in the weeks and months to come”.

The statement, which they said was from “organisations with the aim of sustaining tenancies wherever possible” said at least half a million private renters are in arrears due to the economic impact of Covid-19. “The UK government’s own research shows that ‘private renters report being hardest hit by the pandemic’. Renters and landlords whose finances have been affected since lockdown cannot keep tenancies going without additional financial support.”

The statement said the organisations welcomed many of the measures taken to date, which have helped to sustain tenancies in the short term. But said they “do not go far enough to adequately protect renters going forward”.

“The longer the chancellor waits to take action, the more rent debts will increase, and the greater the risk of homelessness will become. Without additional support, more renters will lose their homes in the coming months, with the risk of an increase in homelessness.”

The statement is calling for a targeted financial package to help renters pay off arrears that have built up since lockdown first began in March last year. They said this will help to sustain existing tenancies and keep renters in their homes – while also ensuring rental debt does not risk them finding homes in the future.

Secondly, they are calling for a welfare system that provides renters with “the security of knowing that they can afford their homes”.

It follows recent calls by the Resolution Foundation thinktank for the creation of a £375m tenant loan scheme for people struggling with private and social rent arrears in England, which would use a model first developed in Spain and since introduced in Wales and Scotland.

“The pandemic has shown how vital this is to providing security at a time of crisis,” the joint statement said, pointing out that the government increased universal credit and housing benefit last year, yet it has chosen to freeze housing benefit rates again from April and is considering cutting the £20-a-week universal credit uplift at the same time.

“It cannot be right that these measures could be pulled away from renters during continued economic uncertainty,” the statement said.

Ride Out Recession Alliance, Money Advice Trust, The Mortgage Works, National Residential Landlords Association, Propertymark and StepChange Debt Charity were also signatories of the statement.

A government spokesperson said: “We’ve put households at the heart of our decision-making throughout the pandemic, with a £280bn package keeping millions in work, temporarily bolstering the welfare safety net by more than £1,000 a year for families, and backing businesses with loans and grants.

“We’re supporting renters by extending notice periods and banning bailiff enforcement of evictions for all but the most serious cases. Councils can also provide additional help through the £180m discretionary housing scheme.”

source: Nicola Slawson

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.