§ Mr. DewarTo ask the Secretary of State for Social Security (1) if he will estimate the effect on the number of claimants of mortgage interest assistance with income support(a) from April to October 1995 and (b) from October 1995 to April 1996, of the decisions to (i) reduce the cap for income support mortgage interest payments to £100,000 and (ii) to pay income support for mortgage interest only after the first nine months on benefit; and what will be the savings in benefit expenditure which result from each of these measures;
(2) what savings he estimates will result from the proposed reduction of the cap on mortgages for mortgage interest payment purposes in a full financial year.
§ Mr. Roger EvansThe effect on the number of claimants of mortgage interest assistance with income support, from April to October 1995, of the decision to reduce the cap for new income support mortgage interest payments to £100,000 will negligible. The estimated savings for the period April to October 1995 is around £1 million, and for October to April 1996 a further £1 million. These estimates are based on the 1993 annual statistical inquiry, uprated to 1995–96 levels.
The new arrangements to pay income support mortgage interest only after the first nine months on benefit will not come into operation until 1 October 1995 and will be subject to wide consultation. The financial effect will depend on the outcome of the consultation and the final detail of the scheme.