§ Baroness Hollis of Heighamasked Her Majesty's Government:
What will be the procedure where a person claiming income support has been refused payment under a mortgage protection policy on the ground that they had a pre-existing medical condition; and what guidance has been issued to (a) Benefits Agency Adjudication Officers and (b) the Benefits Agency Medical Service concerning such a situation.
§ Lord Mackay of Ardbrecknish:When a person who is claiming income support, including assistance with the interest on a mortgage, has a claim for payment under a mortgage protection policy refused by their insurer because they are suffering from a pre-existing medical condition, they must inform the Benefits Agency of this decision. Any new housing costs for which they are claiming assistance will then be treated as existing housing costs and assistance will be awarded at 50 per cent. from week 9 and 100 per cent. from week 27, instead of at 100 per cent. from the 40th week.
Guidance issued to Adjudication Officers covers the award of benefit in this way and instructs them to copy the papers relating to the insurer's decision to the policy section dealing with medical matters. These medical experts will examine the decisions to ascertain that insurers are not abusing this easement. Any queries will be taken up directly with the insurer by officials. The claimant will continue to receive help with his loan, and will not be required to pursue the matter with the insurer.