§ Mr. Lilleyasked the Secretary of State for Social Services whether he has yet reached decisions on future arrangements for supplementary benefit mortgage interest payments.
§ Mr. NewtonAs indicated in the Green and White Papers on social security reform (Cmnds 9517 and 9691) the Government have been considering in discussion with the building societies and other major lenders, what changes might be appropriate in the present arrangements for meeting mortgage interest payments with supplementary benefit.
My right hon. Friend the Secretary of State for Social Services, has today referred to the Social Security Advisory Committee for consultation draft regulations which incorporate the Government's proposals for change. The main proposal is to alter the balance of responsibility between taxpayers, borrower and lender. The amount of mortgage interest payable with supplementary benefit will be limited to 50 per cent. for the first six months on benefit for all claimants aged under 60.
Those remaining on benefit after this period would, as now, have their mortgage interest payments met in full. The Government propose to allow interest on arrears which have accumulated because of the six months limitation to qualify for benefit. This should assist lending organisations to reschedule loans in appropriate cases where interruption of earnings is longer term. A further change will enable homeowners who take out mortgage protection policies to benefit from them through a special supplementary benefit disregard of income from such policies.
522WThe draft regulations also incorporate other minor proposals, including a beneficial amendment to ensure that a mortgage or loan taken out to replace an earlier advance will attract benefit on the same basis as the original loan. Subject to consultation and the passage of the necessary regulations, it is intended that the changes should take effect in the autumn. I am placing copies of the draft regulations and the Department's consultation paper to the Social Security Advisory Committee and also a copy of the Social Security Policy Inspectorate's Enquiry into Mortgage Interest in the Library today.
§ Mr. Barry Jonesasked the Secretary of State for Social Services how many people in Wales are currently in receipt of supplementary benefit; and what was the figure in May 1979.
§ Mr. MajorThe latest information available is as follows:
Numbers May 1979 175,000 February 1985 279,000 Source: Quarterly Statistical Enquiries