§ Mr. AncramTo ask the Secretary of State for Social Security if he intends to review the transaction charge payable by mortgage lenders as a contribution to the costs incurred by the Benefits Agency in providing direct payment to lenders of the mortgage interest allowance in income support.
§ Mr. BurtMy right hon. Friend, the Secretary of State has today laid amendment regulations which will reduce the transaction charge levied under the mortgage interest direct payment scheme from £2.50 to £1 for each payment. The change takes effect from 1 April 1993. This reduction reflects the reduced costs of running the scheme, particularly the absence of the setting-up costs incurred in 1992–93, the first year of operation.
The scheme will continue to provide protection against repossession to many people in receipt of benefit.