HC Deb 30 January 1995 vol 253 cc519-20W
Mr. Corbyn

To ask the Secretary of State for Social Security how many applicants for income support have been refused owing to the habitual residence test per month since it was introduced; and of these how many were(a) British nationals and (b) non-British nationals.

Mr. Roger Evans

The information is set out in the table.

Number of Income Support claimants recorded as having been refused benefit under the habitual residence test
1994 British nationals Non-British nationals
August 237 758
September 372 2,028
October 454 2,724
November 585 2,741
December 439 2,234
Total 2,087 10,485

Mr. Raynsford

To ask the Secretary of State for Social Security what estimate he has made of the savings which will result from his proposals to(a) reduce the cap for income support for mortgage interest payments to £100,000 from April, (b) pay income support for mortgage interest only after nine months on benefit for new borrowers from October, (c) pay income support for mortgage interest only after two months on benefit for existing borrowers from October and (d) pay income support for mortgage interest at a standard rate to all claimants, (i) in 1995–96 and (ii) in a full year.

Mr. Roger Evans

The estimated saving of reducing the cap on mortgage interest payments from £125,000 to £100,000 for new claims from April is £2 million for the year to April 1996. This estimate is based on the 1993 annual statistical enquiry, uprated to 1995–96 levels. The financial effects of the other changes will depend on the outcome of the consultation and the final detail of the scheme.

Mr. Raynsford

To ask the Secretary of State for Social Security what considerations underlay his proposals to adopt a standard rate of mortgage interest payments for income support.

Mr. Roger Evans

The administration of the current scheme, which calculates each penny of interest due and reflects every change in interest rates, is extremely complex. It has been the subject of criticism by both the chief adjudication officer and the National Audit Office. A standard rate will significantly ease this administrative burden as well as reducing the cost to the taxpayer.

Mr. Raynsford

To ask the Secretary of State for Social Security if it is his intention that income support should continue to provide long-term assistance to borrowers to cover mortgage interest payments.

Mr. Roger Evans

Yes.