§ Ms LynneTo ask the Secretary of State for Social Security what support with mortgage interest payments will be available to existing borrowers after October 1995 if they are presently receiving income support help with mortgage interest payments and they accept a job on a short-term contract that will return them to unemployment after October 1995; and what type of insurance policy he 585W expects people in these circumstances to take out to cover their mortgage interest repayments. [30515]
§ Mr. Roger EvansUnder our proposals for changes to the rules on income support help with mortgage interest payments, an existing borrower who is currently receiving help with his mortgage interest payments and who takes a short-term contract before October this year will be treated as if his claim for income support had been continuous if, when he re-claims income support after 1 October, his break in entitlement had been for 12 weeks or less.
If the break in their entitlement was for more than 12 weeks and a new claim is made after 1 October, existing borrowers will get no help with interest payments for two months—eight weeks—and 50 per cent. for the next four months-18 weeks. The full amount, calculated using the standard interest rate, will be payable thereafter.
It is a matter for the individuals concerned to decide how best to meet their mortgage commitments in the initial period of an income support claim. The Association of British Insurers is addressing many of the issues of concern about the interface between benefit and insurance, including the treatment of contract workers, in its forthcoming guidelines to best practice.