News

Social workers look set to benefit from a scheme to give key public sector workers in expensive areas interest-free loans to help towards the cost of buying a house.

The scheme, to be announced soon by transport and local government secretary Stephen Byers, is aimed mainly at south east England.

It is part of a radical £250 million initiative to tackle the shortage of public employees in high-cost areas.

Under the scheme, key public employees in their 20s will be eligible for interest-free loans of up to £10,000 towards a deposit on a property.

They will have up to five years before having to make any repayments although full details have still to be worked out.

A spokesperson for Byers said: "Social workers will be eligible for the loans if the local authority deems them to be key workers where there is a shortage. If the council says they should be in the scheme, they will be.''

Byers said: "There can be little doubt that if we are to recruit and retain key public sector workers, greater assistance will need to be provided to meet the increase in housing costs. We feel that the provision of interest-free loans has the potential to be of real benefit to those who want to buy their own home."

Major problems have been identified in the South East in recruiting and retaining public sector staff because of the high cost of living. Oxfordshire MPs have led the campaign for the action being announced by Byers.

"Affordable homes'' schemes are also projected to cover housing hotspots elsewhere in Britain such as in Bath and Leeds.