Thousands face hardship after mortgage benefit is scrapped

SCRAPPING a mortgage benefit “risks inflicting hardship on thousands” of homeowners, Labour warns.

Support for Mortgage Inter- est, covering interest payments for jobless or pensioner benefit claimants who fall into arrears, becomes a loan next Friday.

It is paid off when claimants die or sell their home. But as of a week ago, 40% had still not spoken to Department for Work and Pensions about the loan.

Of those who had, 51% will decline it. Margaret Greenwood, Shadow Work and Pensions Secretary, told MPs: “Age UK warns many [pensioners] may try to manage by cutting back on essentials, such as heating.”

The £255million-a-year cut to 90,000 people, almost half OAPs, was announced in 2015. Official figures show DWP is yet to get hold of 36,000. DWP’s Kit Malthouse urged them to “take the call and make a good decision”.