Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make it his policy to reform Support for Mortgage Interest by (a) removing the zero earnings rule, (b) reducing the qualifying period from nine months to three months and (c) offering the support as a grant.

The Government announced a package of Housing Reforms on 9th June 2022, including changes to extend the Support for Mortgage Interest (SMI) scheme. The reforms include reducing the qualifying period from nine to three months and removing the zero earnings rule to extend SMI eligibility to all eligible Universal Credit claimants. Further details of the changes are being worked on by officials and will be announced in due course.

There are no plans to revert SMI to a benefit. The purchase of a home involves the acquisition of a valuable capital asset and so a fair balance has to be struck between the needs of homeowners and the cost to taxpayers. The loan system offers the same degree of protection from repossession at the point of need but strikes a better balance between the needs of claimants and the cost to taxpayers.