§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what estimate his Department has made of the average difference between bank and building society mortgage interest rates over the past 12 months. [123236]
§ Mr. BayleyA review of interest rates provided in the Office for National Statistics' financial table 7.1L over the period January to December 1999 shows that a combined building society/bank rate is on average just under 0.28 per cent. higher than the weighted average of the main building societies interest rates. Building Societies continue to provide a comprehensive range of products in a very competitive market. Recent figures show that they continue to outlend the mortgage banks.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what assessment his Department has made of the arrears that have accrued in mortgages taken out by income support and income-based jobseekers allowance recipients in the most recent year for which information is available. [123233]
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§ Mr. BayleyNo information is collected by my Department about the accrual of arrears in mortgages taken out by income support and income based jobseekers allowance recipients. Benefit help for homeowners with housing costs is intended to provide reasonable protection to help secure the home. The mortgage lenders have agreed, under The Mortgage Code, to consider all cases of financial difficulty and mortgage arrears sympathetically and positively.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security how many people were in receipt of ISMI in each of the last five years for which figures are available. [123239]
§ Mr. BayleyThe information is in the table.
Income Support and income-based Jobseeker's Allowance claimants with mortgage interest, Great Britain: February 1995 to November 1999 Thousand Quarter Income Support Income Support for the unemployed/income-based JSA All Income Support/income-based JSA November 1999 254 37 292 August 1999 259 40 300 May 1999 263 144 1307 February 1999 269 148 1317 November 1998 272 48 320 August 1998 278 51 329 May 1998 281 154 1334 February 1998 288 156 1344 November 1997 292 60 351 August 1997 298 69 367 May 1997 301 77 379 February 1997 308 90 398 November 1996 313 98 411 August 1996 319 112 431 May 1996 322 123 445 February 1996 326 134 460 November 1995 330 138 469 August 1995 340 161 501 May 1995 329 162 491 February 1995 327 175 502 1Provisional figures Notes:
1. Customers who are in receipt of Income Support and income-based Jobseeker's Allowance are entitled to assistance with mortgage interest payments.
2. Figures are based on a 5 per cent. sample; as such they are subject to a degree of sampling error.
3. Figures are rounded to the nearest thousand.
4. Income-based Jobseeker's Allowance replaced Income Support for the unemployed from Novrmber 1996.
Sources:
1. Income Support Statistics Quarterly Enquiries, February 1995–November 1999.
2. Jobseeker's Allowance Statistics Quarterly Enquiries, November 1996–November 1999.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what plans he has to revise the index for calculating the ISMI rate to make it more representative of the mortgage lending market. [123234]
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§ Mr. BayleyWe have no plans to revise the index. The standard interest rate used to calculate ISMI entitlement is based on the weighted average of the main building society rates. The building societies continue to provide a broad range of products in a very competitive market. Recent figures produced by the Building Societies Association show that building societies continue to outlend the mortgage banks.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what plans he has to make the ISMI mechanism more quickly responsive to changes in interest rates. [123235]
§ Mr. BayleyThere is no delay in the ISMI mechanism. As soon as the Department is informed by the Office for National Statistics of a change in interest rates, procedures are set in motion to amend regulations. Regulations are required to be laid 21 days before coming into force to allow for proper parliamentary scrutiny.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what estimate his Department has made of the average time between changes in the ISMI rate being triggered and higher payments being made to those in receipt of ISMI, in the most recent year for which figures are available. [123237]
§ Mr. BayleyIt normally takes five to six weeks from receipt of the official notification from the Office for National Statistics to implementation of a change in interest rates. This allows for the Department to reprogramme its computer systems and for new regulations to be laid and made available for proper parliamentary scrutiny.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security (1) what proportion of those entitled to ISMI have had their homes repossessed within nine months of starting to receive(a) income support and (b) income-based jobseeker's allowance in each of the last five years for which figures are available; [123238]
(2) how many repossessions of homes of those in receipt of ISMI there were in each of the last five years for which figures are available. [123240]
§ Mr. BayleyThis Department does not keep any figures relating to home repossessions. The benefit system is designed to provide homeowners with reasonable protection and we encourage everyone, particularly those taking out new loans, to consider how they would meet their mortgage repayments if they lost their income. The Council of Mortgage Lenders and the Association of British Insurers have recently announced a new minimum standard for mortgage protection insurance. Most repossessions are caused by wider, more serious difficulties than any shortfall in benefit. Recent figures produced by the Lord Chancellors Department show that in England and Wales repossession activity is declining.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what recent representations his Department has received on the current ISMI mechanisms. [123244]
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§ Mr. BayleyWe have received a number of letters and Parliamentary Questions about the ISMI scheme. In addition, the Department is in close contact with the Council of Mortgage Lenders and are active members of a lending industry/Government partnership group. The remit of this partnership group includes ISMI and at various times discussions have taken place as to its current design and how it will operate in the future.
§ Mr. Gordon MarsdenTo ask the Secretary of State for Social Security what discussions he has had with the Secretary of State for the Environment, Transport and the Regions on inclusion of reform of ISMI in the Urban White Paper. [123241]
§ Mr. BayleyMy right hon. Friend the Secretary of State has had no discussions with my right hon. Friend the Secretary of State for the Environment, Transport and the Regions on inclusion of reform of ISMI in the Urban White Paper. Options for reform of ISMI are included in the recently published Housing Green Paper.