Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential merits of reverting Support for Mortgage Interest from an interest-bearing loan to (a) an interest free loan and (b) a grant.

Support in the form of loans meets the policy objective of averting the threat of repossession but in a way that provides a fairer balance between the needs of the individual and the burden on taxpayers, many of whom are unable to afford a mortgage of their own. Interest is charged at the gilt rate as this represents the cost to Government of providing the loans.