The scheme was launched by Shelter and the Greater London Authority last year and all of Whitehall has now agreed to offer deposit loans, which offer employees interest-free loans which are paid back through their salaries over the course of up to a year.
In the private sector The Co-operative Group will be the first major employer to get on board, while the scheme is also being taken up by The Confederation of British Industry, London First and the London Chamber of Commerce.
Brandon Lewis, housing minister, said: “With millions of people across the country renting their home we are determined to create a bigger, better private rented sector that is fair to tenants.
“Today’s move will mean thousands of people will be offered a helping hand to rent privately through season ticket style loans from their employers.
“I hope to see more employers in the public and private sector joining the scheme in the near future.”
The Department for Communities and Local Government became the first government department to roll the scheme out to its staff last October.
Richard Pennycook, The Co-operative Group chief executive, added: "For colleagues looking to rent their own home, raising the money for a deposit can be a real stretch.
“We are delighted to offer this helping hand to our colleagues and fully support this initiative.”
