Willie Penrose (Longford-Westmeath, Labour)
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Question 646: To ask the Minister for Social and Family Affairs the position, in view of the current economic climate and the financial circumstances which so many people who have mortgages find themselves in, regarding people who have mortgages and have been in receipt of mortgage supplement for at least 12 months; if she will confirm that mortgage interest supplement will be payable to people who qualify for periods in excess of 12 months, when their circumstances have not improved in the interim; and if she will make a statement on the matter. [29894/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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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 12,900 people in receipt of mortgage interest supplement, an increase of 213% over those in payment at end 2007.

The mortgage interest supplement scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department and is delivered locally by community welfare officers.

In accordance with the statutory qualifying conditions, mortgage interest supplement is normally paid for the duration of the period for which entitlement exists. However, one of the statutory qualifying conditions for the receipt of mortgage interest supplement requires that the amount of mortgage interest payable by the claimant should not exceed such amount as the Executive considers reasonable to meet his or her residential and other needs and that it is reasonable to award a supplement having regard to the amount of any arrears outstanding on the loan. Where such circumstances arise, the Executive has the legislative power to award mortgage interest supplement for a period of not more than 12 months. A person is advised at the outset that the maximum duration of the mortgage interest payment will be 12 months. Before the 12 months has expired, entitlement to the supplement is reviewed and if there has been no change in circumstances, payment of mortgage interest supplement must be discontinued in accordance with the relevant legislative provisions.

Where there has been a change in circumstances such as sub-letting part of the accommodation or a change in the repayment arrangements e.g. an extension of the term of the loan, a review of the original decision may be warranted and a supplement awarded as appropriate, subject to all other statutory qualifying conditions being satisfied.

Guidelines on specific and immediate operational issues arising in the administration of the mortgage interest supplement scheme, including the exercise of additional discretionary provisions in the legislation, have recently been updated and issued to community welfare officers.