× Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

Forum Home  →  Discussion  →  Housing costs  →  Thread

Support for mortgage interest

‹ First  < 7 8 9

Gareth Morgan
forum member

CEO, Ferret, Cardiff

Send message

Total Posts: 1995

Joined: 16 June 2010

JoW - 22 March 2018 12:17 PM

So they can still get SMI as a benefit for the service charge whether or not they have a mortgage too? So the loan would help with interest on the loan and SMI would continue for the service charge?

It was only SMI for service charges if there’d been a loan taken out to pay the charges.  Normally service charges are just housing costs and are unaffected by the move from SMI to loans.

Andrew Dutton
forum member

Welfare rights service - Derbyshire County Council

Send message

Total Posts: 1955

Joined: 12 October 2012

Client is on minimal IS - SMI takes her on to about 10p a week, by the look.

Client has NOT been offeered the loan as yet or contacted about it.

IS tell her that her benefit will stop, sort of like - today.

Can this be right - not even given the option yet????

 

Paul_Treloar_AgeUK
forum member

Information and advice resources - Age UK

Send message

Total Posts: 3196

Joined: 7 January 2016

Andrew Dutton - 05 April 2018 04:50 PM

Client is on minimal IS - SMI takes her on to about 10p a week, by the look.

Client has NOT been offeered the loan as yet or contacted about it.

IS tell her that her benefit will stop, sort of like - today.

Can this be right - not even given the option yet????

 

AFAIK, yes basically Andrew. If they subsequently decide to take up loan, I think there are provisions to backdate but would it be worthwhile in this case? If your only entitlement to any affected benefit is because of inclusion of SMI payments, then all passporting apart from SSMG’s, FP’s and CWP’s doesn’t apply anymore.

Andrew Dutton
forum member

Welfare rights service - Derbyshire County Council

Send message

Total Posts: 1955

Joined: 12 October 2012

Paul_Treloar_AgeUK - 05 April 2018 04:55 PM
Andrew Dutton - 05 April 2018 04:50 PM

Client is on minimal IS - SMI takes her on to about 10p a week, by the look.

Client has NOT been offeered the loan as yet or contacted about it.

IS tell her that her benefit will stop, sort of like - today.

Can this be right - not even given the option yet????

 

AFAIK, yes basically Andrew. If they subsequently decide to take up loan, I think there are provisions to backdate but would it be worthwhile in this case? If your only entitlement to any affected benefit is because of inclusion of SMI payments, then all passporting apart from SSMG’s, FP’s and CWP’s doesn’t apply anymore.

Gad…...

shawn mach
Administrator

rightsnet.org.uk

Send message

Total Posts: 3773

Joined: 14 April 2010

Gareth Morgan
forum member

CEO, Ferret, Cardiff

Send message

Total Posts: 1995

Joined: 16 June 2010

Paul_Treloar_AgeUK - 05 April 2018 04:55 PM

would it be worthwhile in this case?

Might be.  The loan could be replacing a large SMI payment, if the benefit figure was otherwise low.  They still have to pay the mortgage.

Andrew Dutton
forum member

Welfare rights service - Derbyshire County Council

Send message

Total Posts: 1955

Joined: 12 October 2012

Gareth Morgan - 06 April 2018 02:06 PM
Paul_Treloar_AgeUK - 05 April 2018 04:55 PM

would it be worthwhile in this case?

Might be.  The loan could be replacing a large SMI payment, if the benefit figure was otherwise low.  They still have to pay the mortgage.

It is a large payment. The SMI amount is almost as large as the personal allowance.

Claimant has still not been offered a loan but a letter from IS says her entitlement is at an end, then it says they will tell her the date at which her entitlement ends.  That’s a bit confusing.

I take it the letter is referring to the transitional period given in LMI Regs?

The letter, dated 15/3/18, tells the claimant she will get a letter explaining the new system ‘before February 2018’.

This is much worse even than it first appeared. As Spike Milligan would say ‘exactly much worse’....

Paul_Treloar_AgeUK
forum member

Information and advice resources - Age UK

Send message

Total Posts: 3196

Joined: 7 January 2016

We’ve clarified with DWP that backdating is possible for any period, so your client should be fine if they follow things up with DWP Andrew to try to sort out the confusion.

Andrew Dutton
forum member

Welfare rights service - Derbyshire County Council

Send message

Total Posts: 1955

Joined: 12 October 2012

Being a simple sort, and not having had a great deal of time to devote this subject, may I get things straight:

Being on IS/IBJSA/IRESA/UC/PC is a gateway to getting the new SMI loan

The SMI loan is calculated in the same way as SMI used to be, but it is no longer part of any benefit calculation

So - if you would not get the relevant benefit without the addition of the SMI, your benefit stops as of 5/4/18

You are treated as being on a relevant benefit for a period during which the loan is offered to you and you complete an application etc, even if this is after your benefit has stopped - but for the purpose of entitlement to the loan only

If you get an SMI loan you will still not re-qualify for your old benefit unless there’s a change of circumstances, which will mean, as the rollout goes on, you end up on UC

 

Paul_Treloar_AgeUK
forum member

Information and advice resources - Age UK

Send message

Total Posts: 3196

Joined: 7 January 2016

Andrew Dutton - 09 April 2018 02:04 PM

Being a simple sort, and not having had a great deal of time to devote this subject, may I get things straight:

Being on IS/IBJSA/IRESA/UC/PC is a gateway to getting the new SMI loan

The SMI loan is calculated in the same way as SMI used to be, but it is no longer part of any benefit calculation

So - if you would not get the relevant benefit without the addition of the SMI, your benefit stops as of 5/4/18

You are treated as being on a relevant benefit for a period during which the loan is offered to you and you complete an application etc, even if this is after your benefit has stopped - but for the purpose of entitlement to the loan only

If you get an SMI loan you will still not re-qualify for your old benefit unless there’s a change of circumstances, which will mean, as the rollout goes on, you end up on UC

Yes, I think that’s it in general, apart from You are treated as being on a relevant benefit for a period during which the loan is offered to you and you complete an application etc, even if this is after your benefit has stopped - but for the purpose of entitlement to the loan only because you can still be treated as entitled for SSMG’s, Funeral Payments and CWP’s only.

Stuart
Administrator

rightsnet editor

Send message

Total Posts: 890

Joined: 21 March 2016

Looks like the interest rate DWP charges claimants on SMI loans is to drop to 1.3 per cent from 1 July 2019 (from current 1.5 per cent) - set by the forecast market gilt rates for 2019/2020 in the OBR March Fiscal Outlook (table 3.10 page 67).

(DWP normally confirms changes nearer the time (see rightsnet news in January for details of January 2019 rate change)).