§ Mr. Jim CunninghamTo ask the Secretary of State for Social Security (1) what are the projected savings resulting from the cessation of payments in respect of concomitant interest in respect of remortgages;
(2) how many people claiming income support have sold their property since May 1994 following non-payment by the Department of the concomitant interest payments to cover remortgage payments;
(3) if he will make a statement regarding concomitant interest payments;
(4) how many people claiming income support who have remortgaged their home have not been paid concomitant interest payments by his Department since the rule change of May 1994;
(5) what the projected year-on-year figures are for concomitant interest payments in the years 1995–96 and 1996–97.
§ Mr. Roger EvansThe effect of the change to the rules on income support help with mortgage interest payments that came into effect on 2 May 1994 was to stop benefit from being increased to meet the interest on loans that people take out while they are receiving income support. Loans that result from the special needs of disabled person, the need to provide separate sleeping accommodation for children of different sexes over the age of 10 years or for essential repairs and improvements are excluded from this restriction. Where remortgages are concerned, income support continues to be able to held with the interest on the parts of a remortgage that were taken out to pay off loans, or parts of loans, that would have been eligible for benefit had they not been paid off. The new rules only apply if the amount of interest that has to be met has increased as a result of the remortgage, and this increase is not covered by one of the exempt categories.
We have no evidence of anyone having sold their property as a result of the rule change. The other information that has been requested is not available.