§ Mr. Gregor Mackenzieasked the Secretary of State for Defence when he proposes to introduce the further Assisted House Purchase Scheme referred to in paragraph 275 of the National Board for Prices and Incomes Report on the Pay of the Armed Forces.
§ Mr. John MorrisA new scheme, designed to help Service personnel to buy a house shortly before their return to civilian life, has recently been approved and will come into effect on 1st July.
From this date, personnel of all three Services who are on long service commissions or pensionable engagements will be eligible for an interest-free loan towards the purchase of a house during their last twelve months of service. Personnel made redundant will similarly be eligible for a loan. The loan may be up to a maximum of £1,250 for officers and £775 for ratings and other ranks. It will not exceed 90 per cent. of the capital benefits due at the earliest expected date of retirement or discharge.
No repayment will be made during the recipient's service, but on his retirement or discharge a sum equivalent to the loan will be deducted from his terminal benefits.
I am confident that the introduction of this scheme will help to ease the transition from Service to civilian life by giving long service personnel and those made redundant a better chance than they have at present to secure a firm base for their families by the time they leave the Service.