Written answers

Thursday, 30 April 2009

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 44: To ask the Minister for Social and Family Affairs the progress in reviewing mortgage interest supplement; and her plans to amend this scheme and allow more people to qualify. [16986/09]

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 60: To ask the Minister for Social and Family Affairs the steps she is taking to ensure that the qualifying criteria for mortgage interest supplement are altered to ensure that they do not discourage people from moving from welfare to work. [16985/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 44 and 60 together.

The mortgage interest supplement scheme is designed to help those who have difficulty meeting their mortgage repayment schedule where their means are insufficient to meet their needs. The scheme provides a short-term "safety net" within the overall social welfare scheme to ensure that people do not suffer hardship due to loss of employment. A supplement may be paid in respect of mortgage interest only 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 11,300 people in receipt of mortgage interest supplement, an increase of almost 7,000 (175%) over the number in payment at end 2007.

The assessment for the existing 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.

In view of the current economic environment, the Department is conducting a review of the administration of the mortgage interest supplement scheme. 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. Legislative and operational issues arising in the existing mortgage interest scheme, including the cap on hours of employment, are also being examined.

The views of the community welfare service and other interested parties are currently being canvassed as part of the review. In the interim, updated guidelines on the operation of the existing mortgage interest supplement scheme will issue shortly to community welfare service staff.

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