§ Mr. SteenTo ask the Secretary of State for Social Security if he will make a statement on the mechanism by which income support is increased to offset increases in mortgage interest rates. [56572]
§ Angela EagleThe standard rate used to calculate payments of Income Support mortgage interest is based on the weighted average of the main Building Societies' variable rates of interest. This has been the case since its introduction by the previous administration in October 1995. The average is calculated and published monthly by the Office for National Statistics in Financial Statistics table 7.1L. Changes in the standard rate, whether up or down, are triggered by a 0.25 per cent. or more move in the published figure.
§ Mr. SteenTo ask the Secretary of State for Social Security if he will make a statement about mortgage interest rate capping for those receiving social security payments for interest on mortgages; and for what reasons the Government propose to pay arrears that may have arisen. [56573]
§ Angela EagleA standard rate of interest is used in the calculation of mortgage interest included in Income Support and income-based Jobseeker's Allowance. This was introduced by the previous Administration in October 1995. Help is available towards interest on loans taken out to purchase the home or for certain essential repairs and improvements to it. We have no plans to change this arrangement.