§ David DavisTo ask the Secretary of State for Work and Pensions what measures he has taken to eradicate the lag time inherent in setting of the income support mortgage interest rate. [104523]
§ Malcolm WicksBenefit help with mortgage interest payments is calculated using a Standard Interest Rate which is based on the weighted average of basic rates charged by the top building societies. The figure is calculated by the Financial Services Authority and published monthly in the Office for National Statistics' Financial Statistics table 7.1L. Changes in the rate are triggered by a 0.25 per cent. move in the published figure.
We have no plans to change the current arrangements, which give effect to changes as quickly as is practicable. Once the information is received from the Office for National Statistics of an alteration in the interest rates, the Department immediately sets in motion the procedures to amend the relevant computer systems and legislation. Regulations are laid at least 21 days in advance of their coming into force to allow for proper parliamentary procedures to be followed. The same timetable applies when the standard interest rate increases as when it decreases.