Martin Ferris (Kerry North, Sinn Fein)
Link to this: Individually | In context

Question 467: To ask the Minister for Social and Family Affairs the qualifying criteria for mortgage interest relief. [39874/08]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 469: To ask the Minister for Social and Family Affairs if she proposes to take steps to ease qualification for mortgage support in view of the increased unemployment and mortgage commitments people entered into in better times; and if she will make a statement on the matter. [39998/08]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 474: To ask the Minister for Social and Family Affairs the steps she has taken to alleviate the impact of unemployment on families with mortgage commitments and who find themselves under threat of house repossession; and if she will make a statement on the matter. [40003/08]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 485: To ask the Minister for Social and Family Affairs the basis on which persons otherwise eligible for mortgage or rent support are only awarded 50% allowance in cases where one or other party for whatever reason is out of the family home on foot of a barring order or otherwise; if her attention has been drawn to the fact that her Department is forcing the most vulnerable in such situations to enter into a long and tedious legal process at the end of which their home will have already been repossessed by the lending agency; if she will issue instructions that the primary objective of providing the mortgage or rent support as required be observed in the first instance; and if she will make a statement on the matter. [40014/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 467, 469, 474 and 485 together.

The supplementary welfare allowance scheme (SWA) provides for a supplement to be paid in respect of mortgage interest to any person in the State whose means are insufficient to meet their needs. The scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department.

The purpose of mortgage interest supplement is to provide short term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only.

In general a person may be entitled to a mortgage interest supplement provided that:

s/he is habitually resident in the State;

the loan agreement was entered into at a time when, in the opinion of the Health Service Executive, the person was in a position to meet the repayments;

the residence in respect of which the loan is payable is not offered for sale;

the mortgage interest payable does not exceed such amount as the Health Service Executive considers reasonable to meet his or her residential needs. In exceptional circumstances, a supplement may be awarded where the mortgage interest exceeds such amount as the Executive considers reasonable but such a supplement is payable for a maximum of 12 months only; s/he satisfies a means test

Mortgage interest supplements are normally calculated to ensure that a person, after the payment of mortgage interest, has an income equal to the rate of supplementary welfare allowance, appropriate to family circumstances, less a minimum contribution, currently €13, which recipients are required to pay from their own resources. The minimum contribution will be increased to €18 a week from January 2009. Many recipients pay more than the minimum contribution because they are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs.

The existing mortgage interest supplement assessment provides for a gradual withdrawal of payment as hours of employment or earnings increase. In recent years improvements have been made to the means test to encourage eligible people to engage in employment without losing their entire mortgage interest supplement.

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.

Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity.

Where two people enter into a joint mortgage agreement there is an obligation on both parties to meet repayments as agreed with the financial institution. The fact that one of the joint mortgage holders is not resident in the property does not remove the obligation on that person to meet that part of the loan repayment which is reasonably attributable to him/her. It is not considered appropriate that the Exchequer should provide assistance towards the accumulation of a capital asset on the part of the absent party to a mortgage agreement.

Where a person residing in the property becomes the sole mortgage holder, a mortgage interest supplement can be considered in respect of such amount as a community welfare officer considers reasonable to meet the person's accommodation needs up to the full amount of interest payable. Where the person resident in the property continues as a joint mortgage holder, a mortgage interest supplement payment will be considered in respect of half of the interest on the mortgage. However, the community welfare officer will take into account the circumstances of each individual case and in particular where a person resident in a property is seeking to become the sole mortgage holder.

It is a matter for the community welfare officer to a make a decision on entitlement to mortgage interest supplement and the amount of that supplement, based on all of the facts of the case and the relevant legislative provisions. There is a right of appeal against the decision of a community welfare officer to a Health Service Executive Appeals Officer and thereafter to the Chief Appeals Officer of the Department.

There are currently 6,900 people in receipt of mortgage interest supplement, a 68% increase on the numbers receiving the supplement at the end of December 2007. The mortgage interest supplement schemes provide an adequate short-term "safety net" within the overall social welfare system to ensure that people do not suffer hardship due to loss of employment. I do not consider that any further changes in eligibility criteria are required at this time. However the scheme will be kept under review to ensure that it meets the objective of catering for those who require assistance on a short-term basis.