News

The DWP is consulting on proposals to claw back mortgage interest payments from the estates of dead claimants and those who sell their houses. The proposed changes appear to be aimed at both new and existing claimants.

At present, claimants in receipt of Income Support, income-based Jobseeker’​s Allowance (JSA), income-related Employment and Support Allowance (ESA) or Pension Credit may get help towards their mortgage interest payments. This is known as support for mortgage interest

Until now, such support has not had to be repaid. However, the DWP is now arguing that claimants may gain a financial advantage from mortgage interest payments if the value of their property rises whilst they are on long-term benefits. As a result they wish to put a charge on the property of claimants who receive mortgage interest payments. The charge would cover not only the payments but also interest and an administration fee.

The DWP is also proposing that claimants who move onto JSA from income support or ESA should have their mortgage interest payments limited to two years in the same way as other JSA claimants.

In addition, the government is considering extending the waiting period before support for mortgage interest can be paid.

The full call for evidence can be downloaded from this link.