Mary Hanafin (Dún Laoghaire, Fianna Fail)

The mortgage interest supplement scheme provides support for people who have difficulty meeting their mortgage repayments and whose means are insufficient to meet their needs. The scheme provides a short-term income safety net within the overall social welfare system, to ensure that people do not suffer hardship due to loss of employment. A supplement in respect of mortgage interest only may be paid to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. There are currently over 14,100 people in receipt of mortgage interest supplement, an increase of 75%, or 6,000, over the number in payment at the end of 2008.

The assessment for the mortgage interest supplement scheme provides for a gradual withdrawal of payment as hours of employment or earnings increase. Those availing of part-time employment and-or training opportunities can continue to receive mortgage interest supplement subject to their satisfying the standard means assessment rules.

The review of the administration of the mortgage interest supplement scheme is progressing. The main purpose of the review is to consider how the mortgage interest supplement scheme can best meet its objective of catering for those who require assistance on a short-term basis, where they are unable to meet mortgage interest repayments on their sole place of residence. The review group includes representatives from this Department, the community welfare service, the Department of Finance, the Department of Environment, Heritage and Local Government and the Office of the Financial Regulator. The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory code of practice on mortgage arrears on the mortgage interest scheme, and legislative and operational issues that arise, including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in the light of recent changes in the economic climate and the mortgage market. The full review should be complete in early 2010.

Following consultation with the community welfare service, guidelines on specific and immediate operational issues for the community welfare officers operating the scheme were updated recently. The guidelines are available on the Department's website, www.welfare.ie.http://www.welfare.ie/

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