§ Mr. Nigel EvansTo ask the Secretary of State for Social Security when he intends to limit the availability of income support mortgage interest on very high mortgages; and if he will make a statement.
§ Mr. BurtYesterday I laid before Parliament regulations which will limit to £150,000 the amount of loan capital on which income support will pay interest. This change will come into force on 2 August. The regulations also provide for the limit to be reduced to £125,000 from 11 April 1994, and provide protection for existing claimants. Together with these regulations is a report by the Social Security Advisory Committee, CM(2272). These new arrangements are based on our view that people with mortgages, regardless of their loan commitment, should make arrangements to provide for themselves in times of difficulty. The limits will be kept under review in the future.