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TODAY's BUDGET CHANGES
- Edward
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9 years 9 months ago #137940 by Edward
Replied by Edward on topic TODAY's BUDGET CHANGES
Loans for mortgage interest
39 The Bill will enable interest‐bearing loans to be made to eligible owner‐occupiers in respect of
their liability to pay mortgage interest for their home, which will be secured by a second
charge on their property. Those entitled to receive income support, income‐based jobseeker’s
allowance , income‐related employment and support allowance, State Pension Credit or
Universal credit will be eligible to receive a loan.
40 The Bill will replace the existing legislative scheme that allows owner‐occupiers who are
receiving an income‐related benefit to claim additional help towards their mortgage
payments. This help will be replaced by the opportunity to apply for a loan which will only
be granted if individuals satisfy certain requirements, including that they have received
financial advice, and the loan will be secured against their property. The provision of help
with mortgage interest in the form of a loan rather than a benefit will ensure that the
Government continues to mitigate the risk of repossession while providing better value for
the tax payer.
39 The Bill will enable interest‐bearing loans to be made to eligible owner‐occupiers in respect of
their liability to pay mortgage interest for their home, which will be secured by a second
charge on their property. Those entitled to receive income support, income‐based jobseeker’s
allowance , income‐related employment and support allowance, State Pension Credit or
Universal credit will be eligible to receive a loan.
40 The Bill will replace the existing legislative scheme that allows owner‐occupiers who are
receiving an income‐related benefit to claim additional help towards their mortgage
payments. This help will be replaced by the opportunity to apply for a loan which will only
be granted if individuals satisfy certain requirements, including that they have received
financial advice, and the loan will be secured against their property. The provision of help
with mortgage interest in the form of a loan rather than a benefit will ensure that the
Government continues to mitigate the risk of repossession while providing better value for
the tax payer.
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- Gordon
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9 years 9 months ago #137942 by Gordon
I don't think it is possible to make a definitive statement at this time, The budget report is simply a statement of intent, it lacks fine detail.
The Welfare reform Bill, which was passed the next day, is what is called enabling legislation, it does not define the mechanisms and timescales for any of the measures described in the budget.
Until such time as the actual legislation required to make the changes documented in the budget are laid down, we won't be able to answer any of the questions that members might have about these issues.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic TODAY's BUDGET CHANGES
John42 wrote: www.publications.parliament.uk/pa/bills/.../0051/en/16051en.pdf
"Clause 16: Loans for mortgage interest 143 The clause will enable the Secretary of State to replace existing provisions so that help in respect of mortgage payments is instead payable as loan which is secured by a charge against the claimant’s property. The Secretary of State will be able to specify conditions that will govern eligibility to receipt of a loan (including that a claimant must be entitled to receive jobseekers allowance, income support, employment and support allowance, state pension credit or universal credit); the method for calculating the amount of loan which can be made; and that the loan will be secured by a charge over land."
do you think that this definitely sets out that after April 2018 existing claimants will have this benefit changed from a benefit to a loan and not just for new claimants?
I don't think it is possible to make a definitive statement at this time, The budget report is simply a statement of intent, it lacks fine detail.
The Welfare reform Bill, which was passed the next day, is what is called enabling legislation, it does not define the mechanisms and timescales for any of the measures described in the budget.
Until such time as the actual legislation required to make the changes documented in the budget are laid down, we won't be able to answer any of the questions that members might have about these issues.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Edward
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9 years 9 months ago #137955 by Edward
Replied by Edward on topic TODAY's BUDGET CHANGES
"Legislative Consent Motion is not required for this issue"
See page 27 and 28 www.publications.parliament.uk/pa/bills/.../0051/en/16051en.pdf
See page 27 and 28 www.publications.parliament.uk/pa/bills/.../0051/en/16051en.pdf
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- Gordon
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9 years 9 months ago - 9 years 9 months ago #137957 by Gordon
Just because consent to the change is not needed does not mean that legislation defining the change and in particular how existing SMI claimants will be effected does not need to be defined.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic TODAY's BUDGET CHANGES
John42 wrote: "Legislative Consent Motion is not required for this issue"
See page 27 and 28 www.publications.parliament.uk/pa/bills/.../0051/en/16051en.pdf
Just because consent to the change is not needed does not mean that legislation defining the change and in particular how existing SMI claimants will be effected does not need to be defined.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 9 years 9 months ago by Gordon.
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- JenJJ
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9 years 9 months ago #137961 by JenJJ
Replied by JenJJ on topic TODAY's BUDGET CHANGES
Looking at what it says there above in clause 16 and reading what Osbourne said in his statement it looks like it has been left deliberately vague.
Other cuts like 2 child tax credits and ESA were very specific; new claimants after a certain date.
My "guess" is the vagueness is because they may apply to existing claims.
More guesses - the other thing is that the SoS can specify conditions such as eligibility so they could do credit reference checks in addition to you needing to be on ESA, which would then leave a trace on your credit rating. Then there would also be the conditions of interest rates and repayments.
The worrying thing about it though is that it is a loan secured on the home (I think that is what it means - charge over land) which is a decision never to be taken without financial advice. I can see a lot of people not taking it up for that reason.
Other cuts like 2 child tax credits and ESA were very specific; new claimants after a certain date.
My "guess" is the vagueness is because they may apply to existing claims.
More guesses - the other thing is that the SoS can specify conditions such as eligibility so they could do credit reference checks in addition to you needing to be on ESA, which would then leave a trace on your credit rating. Then there would also be the conditions of interest rates and repayments.
The worrying thing about it though is that it is a loan secured on the home (I think that is what it means - charge over land) which is a decision never to be taken without financial advice. I can see a lot of people not taking it up for that reason.
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- Edward
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9 years 9 months ago #137968 by Edward
Replied by Edward on topic TODAY's BUDGET CHANGES
interesting though that the word "replace" is included.
Clause 16: Loans for mortgage interest 143 The clause will enable the Secretary of State to replace existing provisions so that help in respect of mortgage payments is instead payable as loan which is secured by a charge against the claimant’s property.
Clause 16: Loans for mortgage interest 143 The clause will enable the Secretary of State to replace existing provisions so that help in respect of mortgage payments is instead payable as loan which is secured by a charge against the claimant’s property.
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