§ Sir Peter Hordernasked the Secretary of State for Social Services if he intends to change the way that income from home income plans is taken into account in the housing benefit assessment.
§ Mr. NewtonWe have received a number representations about the way that income generated by home income plans is treated in the housing benefit assessment. At present, following legal advice, our guidance manual states that the whole of such income should be taken into account, including that portion which is deducted at source as mortgage interest. We have decided that in future, in view of the special nature of these plans, the mortgage interest deduction should be disregarded in the assessment. This will require an amendment to the housing benefits regulations. We hope to introduce the change in the near future following consultation with the relevant organisations.