Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 334: To ask the Minister for Social and Family Affairs if there are people in receipt of mortgage interest supplement who also have mortgage protection policies; the steps her Department is taking to ensure that people in receipt of mortgage insurance supplement are not also claiming under mortgage protection policies; and if she will make a statement on the matter. [20343/09]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 335: To ask the Minister for Social and Family Affairs if there is an increased role for mortgage protection policies here in view of the changing economic climate and the increasing pressure being placed on the State under the mortgage interest supplement scheme; the steps that will be taken to encourage people to make their own provision for mortgage interest protection in circumstances where they can afford it when taking out a home loan; and if she will make a statement on the matter. [20344/09]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 336: To ask the Minister for Social and Family Affairs if she will estimate the exposure of the State under the mortgage interest supplement scheme for the year to the end of 2009; when a review of the mortgage interest supplement scheme will be completed; and if she will make a statement on the matter. [20345/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 334 to 336, inclusive, 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. A supplement may be paid in respect of mortgage interest only and in respect of a house which is a person's sole place of residence. Mortgage repayment protection is designed to cover mortgage repayments if a mortgage holder cannot work due to compulsory redundancy, illness or disability. However, there is no statutory obligation on a person to take out such mortgage repayment protection. The introduction of mandatory mortgage repayment protection for all new mortgages is a matter for consideration by the Government in the context of overall consumer credit policy.

As part of the mortgage interest supplement claim process, an applicant is obliged to disclose all means including income from a mortgage repayment protection policy. The process also requires lending agencies to certify where a mortgage is covered by a mortgage repayment protection policy. Where it is confirmed that such a policy is in place, the income from the policy is assessed as means and it is the responsibility of a community welfare officer to decide how much, if any, mortgage interest supplement is payable in such circumstances. If a mortgage repayment protection policy has been taken out with an agency other than the lending agency, the process is dependent on an applicant for mortgage interest supplement disclosing this information to a community welfare officer.

There are currently 11,900 recipients of mortgage interest supplement, a 190% increase since the end of 2007. The published estimate of expenditure for 2009 mortgage interest supplement is €40.1m, an increase of €12.5m on the outturn of expenditure in 2008. Overall, it is expected that adequate provision has been made for the mortgage interest supplement scheme in 2009. However, expenditure continues to be closely monitored on a monthly basis taking into account trends in recipient numbers, average monthly payments and savings arising from the supplementary budget measures.

The current 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. Legislative and operational issues arising in the existing mortgage interest scheme, including the cap on hours of employment and the need for mortgage repayment protection, are also being examined.