The Co-Operative Group is one of the first employers to offer the government’s new interest-free loan to help employees pay for a deposit on a rented home.
The retail organisation will offer the scheme, which is being rolled out across the UK, to its 70,000-plus employees to help staff pay their tenancy deposit when moving into a privately rented home.
Chartered surveyors Gerald Eve, housing and homelessness charity Shelter, which piloted the scheme last year, and Notting Hill Housing are among other employers to offer the scheme.
Government-related departments the Greater London Authority, the Department for Communities and Local Government as well as London First, London Chamber of Commerce and the Confederation of British Industry (CBI) are also rolling out the scheme.
The rental deposit loan scheme works in a similar way to a season ticket loan. It offers staff an interest-free loan to help employees pay a tenancy deposit, and repayments are then deducted from their monthly salary over a period of time, usually in monthly instalments to repay the amount of the loan.
Richard Pennycook, chief executive officer at The Co-Operative Group, said: “For employees looking to rent their own home, raising the money for a deposit can be a real stretch.
“We are delighted to offer this helping hand to our employees and fully support this initiative.”
Campbell Robb, chief executive of Shelter, added: “After we successfully piloted the scheme for our own staff last year, we’re now calling on employers across the country to do the same and help their staff move home without breaking the bank.”
Mayor of London Boris Johnson said: “By rolling out this scheme nationally we will be able to ensure that employees can secure a home without enduring unnecessary financial difficulty.”