The supplementary welfare allowance scheme (SWA) provides for a supplement to be paid in respect of mortgage interest to any person in the State whose means are insufficient to meet their needs. The scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department.
The purpose of mortgage interest supplement is to provide short term 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. In general a person may be entitled to a mortgage interest supplement provided that: s/he is habitually resident in the State, the loan agreement was entered into at a time when, in the opinion of the Health Service Executive, the person was in a position to meet the repayments, the residence in respect of which the loan is payable, is not offered for sale; the mortgage interest payable does not exceed such amount as the Health Service Executive considers reasonable to meet his or her residential needs. In exceptional circumstances, a supplement may be awarded where the mortgage interest exceeds such amount as the Executive considers reasonable but such a supplement is payable for a maximum of 12 months only; s/he satisfies a means test.
Mortgage interest supplements are normally calculated to ensure that a person, after the payment of mortgage interest, has an income equal to the rate of supplementary welfare allowance appropriate to family circumstances less a minimum weekly contribution, currently €18, which recipients are required to pay from their own resources. This minimum contribution is being increased to €24 with effect from 1 June 2009. Many recipients pay more than the minimum contribution because they are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs.
The existing mortgage interest supplement assessment provides for a gradual withdrawal of payment as hours of employment or earnings increase. In recent years improvements have been made to the means test to encourage eligible people to engage in employment without losing their entire mortgage interest supplement. 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. Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity. Each application for mortgage interest supplement is determined by a community welfare officer taking account of the relevant legislative provisions and on the basis of the merits of each individual case.
In view of the current economic environment, the Department has commenced 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.