Oral Answers to Questions

Karen Buck Excerpts

Monday 18th October 2010 Commons Chamber

[Steve Webb]

We will certainly move as fast as we can on this issue. My hon. Friend may be aware that had we done nothing the higher rate of 6% was due to expire at the end of this year and revert, under the previous formula, to just over 2%. We felt that that was unfair, and we will pay 3.6%, which is the average mortgage rate.

[Ms Karen Buck (Westminster North) (Lab)]

The Council of Mortgage Lenders indicated that financial support from the Government for home owners who got into trouble was one of the key reasons fewer repossessions occurred in recent years than in other recessions. Given the impact of the reduced levels of support for mortgage interest relief and the cuts in housing benefit, does the Minister think that the number of people requiring financial support because they are homeless will be higher or lower than now at the end of next year?

[Steve Webb]

The hon. Lady is very knowledgeable about housing matters and I welcome her to her new role. She may not be aware that we will spend more money in the next two years on support for mortgage interest for people who are out of work than the previous Government planned to do. They planned to cut support to 2%, which would have led to many more homelessness cases.