asked the Minister for Social Welfare if he will examine the possibility of introducing a scheme whereby mortgage holders who become unemployed can obtain financial assistance towards the cost of mortgage repayments, at least equivalent to the amount of tax relief for which they would have qualified had they remained in employment; and if he will make a statement on the matter.
Written Answers. - Mortgage Repayments.
17.
Under the supplementary welfare allowance scheme a person can receive assistance in the form of a weekly supplement to help meet the cost of rent or mortgage commitments. Under these arrangements a payment towards mortgage interest can be granted where the interest exceeds £3.10 per week. The amount payable is the amount in excess of £3.10 per week or such part of that amount as the health board considers reasonable taking account of all the circumstances.
Under the income tax code a person with mortgage repayments is given a tax-free allowance of 80 per cent of the interest payments up to a ceiling. The actual amount of tax relief depends on the person's marginal rate of tax.
In general, under the supplementary welfare allowance scheme the object is to leave the client with a disposable income, after payment of mortgage interest, equivalent to the supplementary welfare allowance rate appropriate to his family circumstances, less £3.10 a week. Thus, clients in similar family circumstances will have similar incomes after they pay their mortgage interest.
Payment of mortgage supplements by reference to the income tax relief a person previously received could result in differing treatment of claimants in similar circumstances under the social welfare code. Under existing arrangements the supplement payable under the supplementary welfare allowance scheme would exceed the tax relief allowable on the mortgage in many instances. I believe that the present arrangements under the supplementary welfare allowance scheme are reasonable and I do not consider that a change in the arrangements is necessary.