Finian McGrath
Question:70 Deputy Finian McGrath asked the Minister for Finance the position regarding EBS mortgage repayments for persons on welfare. [5974/12]
View answerThursday, 2 February 2012
Questions (72)
Written answers
I assume that the Deputy is referring to the Mortgage Interest Supplement Scheme which is administered by the Department of Social Protection. I have been advised by that Department that the purpose of the Mortgage Interest Supplement Scheme is to provide short term income to eligible persons who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists only with the interest portion of the mortgage repayments. The capital element of the repayment is not taken into account in calculating the amount of supplement payable as it is not considered appropriate that the Exchequer should repay part of the initial loan and thereby provide assistance towards the accumulation of a capital asset on the part of the individual concerned. The Scheme applies to mortgages held by EBS customers in the same manner as it applies to all other mortgages.
I have also been informed that, under Social Welfare rules, the supplement is calculated to ensure that a person, after the payment of the mortgage interest, has an income equal to the rate of Social Welfare appropriate to their family circumstances less a minimum contribution which recipients are required to pay from their own resources. Many recipients pay more than the minimum contribution because recipients are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic Social Welfare rate towards their accommodation costs.