Written answers

Tuesday, 3 February 2009

Department of Social and Family Affairs

Mortgage Interest Supplement

9:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 129: To ask the Minister for Social and Family Affairs the measures that have been put in place by her Department in conjunction with other Departments to meet the growing applications for assistance by people struggling to meet mortgage repayments; and if she will make a statement on the matter. [3272/09]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 163: To ask the Minister for Social and Family Affairs her plans to introduce new regulations for mortgage interest supplement. [3221/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 129 and 163 together.

The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of mortgage interest. The purpose of the 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.

As of 23 January 2009, there were over 8,500 people in receipt of mortgage interest supplement, an increase of 4,400 (108%) over the number in payment at end 2007. New provisions relating to mortgage interest supplement were included in the Social Welfare (Miscellaneous Provisions) Act 2008. These provisions were inserted to strengthen the legal basis for the regulations governing the payment of mortgage interest supplement and to ensure that new regulations can be made setting out the conditions and circumstances under which mortgage interest supplement can be paid and the duration of the payment. The relevant regulations have not yet been made.

The Department has commenced a review of the administrations of the mortgage interest supplement scheme. The main purpose of the review is to consider how, in the current economic environment, the mortgage interest supplement scheme can best meet its objective of catering for those who require income assistance on a short-term basis, where they are unable to meet mortgage interest repayments on their sole place of residence. Legislative and operational issues arising in the existing mortgage interest scheme will also be examined and new regulations made as required.

The mortgage interest supplement scheme is administered by the community welfare service of the Health Service Executive on behalf of the department. The operational arrangements for the processing of applications and the payment to qualifying individuals, is a matter for the respective community welfare division areas.

The administration costs of the supplementary welfare allowance, including mortgage interest supplement, and back to school clothing and footwear schemes are met by the department. The issue of increased demand on existing resources is a matter for the HSE in the first instance to prioritise workloads and re-deploy resources where necessary so that frontline services are maintained. The department is committed to working closely with the HSE in ensuring effective delivery of the supplementary welfare allowance scheme and associated income support payments. It is open to the HSE at anytime to approach the department to review its allocation for staff costs associated with delivery of these services. However, the question of any increase in expenditure for staffing within the community welfare service above that currently provided, would love to be considered in the context of overall Government policy on public service manpower levels.

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