The recession is really starting to bite many Britons as unemployment figures stand just below the 2 million mark, the highest since April 1999. Figures presented by the National Office of Statistics suggest that unemployment in the UK has risen to 6.1%, an increase from 5.2% in the last year.

In actual terms it represents an increase of around 300,000 individuals. These increases are mirrored when one looks at the number of individuals seeking government support and benefit to help them through the recession. The number of people signing up for Job Seekers Allowance increased by around 78,000 in December or 1.16 million in total.

One of the consequences of unemployment is the inability to keep up with financial obligations such as a mortgage which can result in your house being repossessed. According to the Council of Mortgage Lenders, as many as 75,000 people in the UK are in danger of losing their homes due to repossessions, an increase of around 30,000 homes from 2008. However, financial institutions are only supposed to repossess as a last resort and if they have exhausted all other alternatives.

In order to tackle this situation the government have announced a £200 million package to help homeowners protect their homes against repossession. The scheme will allow stricken homeowners the ability to sell a proportion of their home to their local authority and rent it back from them. This will reduce the need for a bank to repossess the property and help the individual remain in their home. The government estimates the scheme will protect around 6,000 homes from being repossessed.