Oral Answers to Questions

Jessica Morden Excerpts

Monday 5th February 2018 Commons Chamber

[Kit Malthouse]

Mortgage support is being offered at exactly the same rate as currently. The only difference is that it is now being deferred as a loan recoverable against any equity available in the house should it be sold in the future. Current participants in the scheme should see absolutely no difference unless and until they sell or transfer the house, at which point the taxpayer will recover the support offered.

[Jessica Morden (Newport East) (Lab)]

21. This change to support for mortgage interest will hit very hard thousands of low-income households, half of whom are pensioners. Does the Minister acknowledge that this change has not been well publicised and that, at the very least, the Government should pause and communicate what it will actually mean for people financially?

[Kit Malthouse]

We have to recognise that we are dealing with support for people who are accumulating what is often a very significant capital asset, and it seems only right that when equity becomes available the taxpayer is able to recover some or all of the support. There has been significant communication on the scheme with the people who are participating in it, and that is continuing. There will be between four and six written communications, and people will be invited to call a telephone number where they can obtain information from a third-party adviser before we get to April, when the scheme comes into play. I am confident that the people who are participating in the scheme at the moment will have enough information. Certainly, large numbers are making a decision either way at the moment.