§ Lord Molloyasked Her Majesty's Government:
Whether they intend to reform the payment by the Department of Social Security of money towards mortgage costs; and in particular, whether they intend to limit the amount payable to any one person.
§ The Parliamentary Under-Secretary of State, Department of Social Security (Lord Henley)The regulations presently in force limit the amount of income support payable towards mortgage interest where payments are excessive. This is where:
—the accommodation is too large; or
—the accommodation is in an unnecessarily expensive area; or
—the outgoings are higher than those on suitable alternative accommodation in the same area.
The restriction—to the amount that the claimant would need to obtain suitable alternative accommodation—applies from the start of the claim if the claimant could not afford the financial commitment when it was entered into, provided it is reasonable to expect the claimant and family to move. Its application may be deferred for 26 weeks where the commitment was affordable and for up to a further 26 weeks if the claimant is using his best endeavours to obtain cheaper accommodation.
This restriction is in addition to the general rule that limits help to 50 per cent. of the interest payable during the first 16 weeks of claims from people under age 60.
No help is given with capital repayments or insurance premiums.
These rules are kept under careful review, as is all social security legislation.