HC Deb 29 June 1992 vol 210 c429W
Mr. Cousins

To ask the Secretary of State for Social Security whether the proceeds of mortgage protection insurance are counted as general income, or as a specific offset to any entitlement for mortgage interest support in the calculation of income support; and what are the relevant regulations or orders or guidance to adjudication officers.

Mr. Burt

Income from a mortgage protection insurance policy intended and used to meet payments on a loan that is eligible for help from income support is counted as general income, but the following amounts are ignored:

  • the amount of the capital repayments, or the endowment premiums on an endowment mortgage;
  • the amount of interest not being met in income support because of the 50 per cent. restriction during the first 16 weeks of the claim;
  • the amount of the premiums due on the policy.

The relevant regulation is paragraph 29 of schedule 9 to the Income Support (General) Regulations 1987—SI 1987–1967. Guidance on this for adjudication officers is at paragraphs 29663–29666 of the Adjudication Officers' Guide. The Benefits Agency issued additional guidance on the assessment of cases involving mortgage protection policies in a bulletin to all income support staff on 9 June 1992.