UK homeowners who end up struggling with their mortgage payments due to a job loss may have to build up significant arrears before help arrives, according to a former pensions minister.

Steve Webb said the number of people receiving government help with their mortgage costs has collapsed since a reform to the system in 2018. From April 2018, a system of benefits for mortgaged homeowners who lost their job was replaced with a system of repayable loans, secured against the claimant’s property.

Former Liberal Democrat MP Webb highlighted figures for May 2022, suggesting around 12,845 loans were in payment, compared with around 90,000 receiving help through the benefit system in March 2018, just before the new regime was introduced, and around 200,000 being helped a decade ago.