Thursday, 14 July 2016

Tenancy Deposit Loan Scheme for Service Personnel Launched

A new Tenancy Deposit Loan Scheme has been launched (6 July 2015) to allow Service personnel (SP) to apply for a loan, in the form of an advance of pay. This is to meet the cost of a deposit for a rental property, mirroring a similar scheme for civilian personnel.

Moving home within the private rental sector can be expensive, and sometimes affording a deposit can prevent personnel considering private rental as an accommodation option. The DCLG has developed a new initiative through which they allow staff to apply for an advance of salary to help meet the cost of a private rental deposit. The MOD has implemented a similar scheme for both Service and civilian personnel. For SP it will be provided through the Advance of Pay mechanism. All Regular and Full Time Reserve Service personnel, who have completed at least two months’ service, are eligible to apply for the scheme. However, overseas personnel are already eligible to apply for an advance of pay on assignment and are excluded from the scheme*; other detailed eligibility criteria may be found in the JSP 754 and in T Letter 315/15.

The initiative was developed by the Department of Communities and Local Government (DCLG) to assist workers in meeting the cost of a deposit to support mobility. The MOD has adopted the scheme, recognising that this provides a further element of choice, especially for those SP who are not entitled to SFA.

It is limited only to the cost of the deposit and, aligned with current Advance of Pay policy (Chapter 2, Section 5 of JSP 754), must be repaid over 12 months.

* They would become eligible to apply on return assignment to UK.