Dáil Éireann díospóireacht -
Thursday, 22 Feb 1990

Vol. 396 No. 2

Written Answers. - Mortgage Subsidies.

Michael D'Arcy

Ceist:

18 Mr. D'Arcy asked the Minister for Social Welfare his views on whether regulations restricting social welfare mortgage subsidies to interest only and excluding capital makes the benefit worthless to many unemployed in mid-life who are in mid-payment; and if he will review this limitation.

Alan Shatter

Ceist:

62 Mr. Shatter asked the Minister for Social Welfare whether he will review his decision to restrict mortgage subsidies to interest only in view of the fact that many of those worst hit by long-term unemployment are in middle life and at stages of payment where capital is the major element in repayment, especially in view of the critical state of public housing at present.

Minister for Social Welfare (Dr. Woods)

I propose to take Questions Nos. 18 and 62 together.

Under the existing arrangements for mortgage supplementation under the supplementary welfare allowances scheme, mortgage supplements are essentially provided on a temporary basis. The supplements are intended to cover the interest element of the repayments and are only provided where the applicant can make the capital repayments or comes to an arrangement with the lending agency that it will defer capital repayments for the time being.

Supplements are reviewed at six monthly intervals and will not normally be continued after 12 months. Where, however, the mortgage supplement is no greater than the rent allowance which would ordinarily be payable in any case, the mortgage supplement may be paid indefinitely. In this way temporary relief is afforded on a uniform basis to all applicants in order to give them time to make suitable long term arrangements appropriate to their situation.

Amendment of the regulations governing mortgage supplementation so as to permit payment of assistance in respect of the capital element of repayments could have significant cost implications and would have to be considered in a budgetary context.