§ Mr. Matthew TaylorTo ask the Secretary of State for Social Security if he will list the schemes his Department operates to assist staff facing financial hardship following a transfer, showing(a) the particular criteria and rules applying to each one, including the circumstances under which any loans can be written off, (b) the total amount loaned or granted under the schemes in 1992–93 and so far in 1993–94 and (c) the number of staff assisted in 1992–93 and so far in 1993–94.
§ Mr. HagueTwo schemes address financial difficulties brought about by the fall in house prices since 1989.
1. Bridging Loans
The Department may assist a member of staff transferred at the public expense who is in severe and immediate financial difficulties as a result of taking out a bridging loan which now exceeds the selling price of property.
Provided the member of stafff cannot make good the shortfall of funds from his or her own resources and, that a value for money case can be clearly established, the Department can offer:
An interest-free advance of up to 12 months salary repayable over 15 years; and/or
An additional housing cost allowance to cover the interest charges on extra mortgage borrowing; and/or
As a last resort where other options are not possible, to write off up to £5,000 of the bridging loan. Amounts in excess of this require Treasury approval.
2. Mortgage Redemption (Negative Equity)
Where staff transferred at the public expense face genuine financial hardship an advance of up to 12 months salary may be made, repayable over 15 years.
The total amounts loaned or granted and the number of staff assisted are as follows:
Bridging loan Mortgage 1992–93 Total amount loaned or granted (£) 805,865 192,000 Number of staff assisted 65 23 1993–94 (to date) Total amount loaned or granted (£) 188,983 123,000 Number of staff assisted 18 21