§ Mr. Matthew TaylorTo ask the Secretary of State for Employment if he will list the schemes his Department operates to assist staff facing financial hardship following a transfer, showing(a) the particular criteria and rules applying to each one, including the circumstances under which any loans can be written off, (b) the total amount loaned or granted under the schemes in 1992–93 and so far in 1993–94 and (c) the number of staff assisted in 1992–93 and so far in 1993–94.
§ Mr. Michael ForsythWhen staff in the Employment Department Group are transferred to other sites in order to maintain operational efficiency, allowances are payable to cover the costs of house moves. In addition, if any staff are experiencing severe financial hardship, the Department has discretion to help with the repayment of bridging finance. Staff are required to borrow the maximum available from commercial sources. Help may then be available in one or more of the following ways
An interest-free loan of up to 12 months' salary; and/orAn interest bearing loan; and/orIn very exceptional cases, write-off of part of the capital. If the total to be written off is in excess of £5,000, in accordance with required procedures, prior Treasury approval is soughtEach case is dealt with according to the particular circumstances and its merits.
Staff transferring who find that the value of their old home is no longer sufficient to repay the mortgage may be allowed an interest-free loan of the difference between the sale price and outstanding mortgage to allow a relocation to go ahead.
In 1992–93 40 staff received help in this way. The cost was £457,000, of which just under £130,000 will be recovered over the next 10 years. In 1993–94 so far, four staff have received help, at a cost of £41,000, of which just under £10,000 will be recovered.