Coalition considers charge on support for mortgage interest scheme | Money | guardian.co.uk
The government is considering clawing back a benefit designed to help unemployed people meet their mortgage commitments, a move which could have "disastrous consequences" for families.
Lord Freud, minister for welfare reform, is calling for evidence on whether new claimants on the Support for Mortgage Interest (SMI) scheme, a benefit that pays mortgage interest on behalf of jobless homeowners, should receive financial help indefinitely without the tax payer having the chance to recoup some of the costs. Proposals include the suggestion that new claimants who want to continue receiving support after a fixed period of time should receive this help in exchange for a charge on their homes, which can be recouped when the properties are sold.
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