The Scottish Government have been accused of a “catastrophic failure” to protect tenants after it emerged just £550,000 has been paid out from a £10 million hardship fund.

In response to a Freedom of Information request, published on the government website, it has been revealed just 207 tenants have benefitted from the Tenant Hardship Loan Fund that was launched in December last year.

The fund was launched with £10m of funding offered interest-free loans to tenants who had fallen into rent arrears due to the pandemic.

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The Scottish Government's tenant hardship fund has paid out only £550k from £10m.

Tenants could apply for a loan to cover up to nine months worth of arrears and was open to those who were unable to claim other avenues of support such as welfare benefits.

However, the low uptake of the scheme was labelled as having “catastrophically failed” tenants by Scottish Labour, with the Scottish Conservatives saying it was “all too typical of the SNP”.

Miles Briggs, the Scottish Conservative’s housing spokesperson said: “They talked up this fund, but it is simply failing to deliver the necessary urgent support that tenants require.

“It is appalling that funds are being released at a snail’s pace and that hundreds of tenants have missed out altogether.

“The SNP must guarantee that this fund is designed to support our most vulnerable tenants. Otherwise they are running the risk of many people across Scotland being made homeless, which continues to be a stain on our society.”

Figures from the Scottish Government state that of the 1,009 applicants, applications from only 207 were approved at a value of £558,295.

This is an average loan of £2,697, officials said.

A further 110 applications were still being assessed as of August 3, with 159 private sector tenants and just 48 social rented sector tenants benefiting from the fund.

Just under half of all applicants to the fund (458 of 1,009) were rejected, with one in five (234) either withdrawing their application or it falling through.

Reacting to the figures, Labour’s housing spokesperson Mark Griffin said: “This is not good enough. Scotland’s tenants are in desperate need and the SNP’s loan fund has catastrophically failed them.

“That only one in five applicants have been supported is scandalous.

“Any spike in homelessness would be a national scandal for which the SNP would be directly accountable.

The Scottish Liberal Democrat’s housing spokesperson, Paul McGarry, said the Scottish Government should learn lessons from the figures.

He said: “These figures are shockingly low, and it is essential to understand the reason behind it, especially for the 234 withdrawn applications and 458 rejected or refused applications..

'Catastrophic failure' as Scottish Government's tenant hardship fund pays out 'shockingly low' amount