§ 94. Mr. Meacherasked the Secretary of State for Social Services how the rent allowances paid to war widows are calculated in cases where they are buying their homes by means of mortgages; and how this differs from the calculation of rent allowances for owner-occupiers for supplementary benefit purposes.
§ Mr. DeanA war widow's rent allowance, which is paid only where there is a child, is intended to help her with the cost of the accommodation she needs because of the children and is subject to a maximum of £2.50 a week. Where a war widow is an owner-occupier her notional rent is calculated on the basis of the gross annual value of the property plus the yearly rates—including water rate and drainage rate. Ground rent, chief rent, and (in Scotland) feu duty is not included, nor is any account taken of payments of capital or interest on a property which is subject to a mortgage. No allowance is given in respect of the first 30p a week, so calculated.
Persons entitled to supplementary benefit receive a rent allowance based on the actual rent, whether or not there is a child in the family. In the case of an owner-occupier, the outgoings allowed in the calculation of the rent allowance are the sum of interest on any mortgage —but not repayment of mortgage capital—general and water rate, ground rent (feu duty in Scotland) and an allowance to cover insurance and repairs.