Mary Hanafin (Dún Laoghaire, Fianna Fail)

I propose to take Questions Nos. 72, 81, 83 and 122 together.

The initial purpose of the mortgage interest supplement scheme was to provide short-term support to people who have difficulty meeting their mortgage repayments due to changes in their employment circumstances and whose means are inadequate to meet their basic day-to-day needs. The goal of the scheme, within the overall social welfare framework, was to ensure that people do not suffer unnecessary hardship due to loss of employment and can, in the short term, maintain their sole place of residence while being unemployed. Mortgage interest supplement only covers the mortgage interest payments in respect of an eligible person's sole place of residence. It is a means tested payment and other qualifying criteria apply. Just over 15,400 people are in receipt of mortgage interest supplement at present. Given that there were 8,091 recipients in 2008, there has been an increase of 91% over the last 12 months. The levels of expenditure on the scheme for the years up to December 2009 and December 2008 were €60.7 million and €27.7 million respectively. Therefore, there has been a 119% year-on-year increase in the outturn.

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 or training opportunities can continue to receive mortgage interest supplement, as long as they satisfy the standard means assessment rules. Claim details are generally electronically recorded when entitlement to mortgage interest supplement is refused. As the practice can vary between community welfare areas, statistics for the number of people who applied for and were refused mortgage interest supplement without an appeal are not fully reliable. Community welfare officers have been reminded on many occasions to record electronically details of the receipt and status of all claims. Requests to change operational procedures should be viewed in the context of the increased demands being placed on community welfare officers in the current economic environment.

The review of the administration of the mortgage interest scheme is progressing. The main purpose of the review is to examine how the scheme can best meet its objective of catering for those who require assistance on a short-term basis because they are unable to meet mortgage interest repayments on their sole place of residence. The review group includes representatives of the community welfare service, the Departments of Finance, Social and Family Affairs and the Environment, Heritage and Local Government and 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 supplement scheme and legislative and operational issues including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in light of recent changes in the economic climate and the mortgage market. The full review should be completed in the coming weeks. The ensuing report will be available for publication in April 2010. Following consultation with the community welfare service, guidelines on specific and immediate operational issues for the community welfare officers operating the scheme have been finalised. The guidelines were issued in June 2009 and are available on the Department's website, www.welfare.ie.

See this speech in context