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Regarding SMI

heavenhelpheavenhelp Member Posts: 24 Listener
edited February 2018 in Finances and extra costs

In receipt of SMI as a benefit prior to 7/07 2017 for more than 39 wks to cont getting as benefit
This is on the Government website

Support for Mortgage Interest (SMI) Overview What you'll get Eligibility How to claim Get other financial help with your housing costs 3. Eligibility To qualify for Support for Mortgage Interest (SMI) you must be out of work or of pension age. You also usually need to be claiming one of the following: Income Supportincome-based Jobseeker’s Allowance (JSA) income-related Employment and Support Allowance (ESA) Universal CreditPension Credit You might still be able to get SMI if you apply for one of the qualifying benefits but can’t get it because your income is too high. You’ll then be treated as getting the benefit you applied for. Contact the relevant office to check if you’re eligible for SMI. What type of SMI you can get

Whether you can get SMI paid as a benefit or as a loan depends on when you get, or are treated as getting, your qualifying benefit.

If you get Pension Credit

Your SMI will be paid as a benefit if you get Pension Credit before 6 April 2018.

It will be paid as a loan if you get Pension Credit on or after 6 April 2018.

If you get another qualifying benefit

Your SMI will be paid as a benefit if you get another qualifying benefit before 7 July 2017. You must have been getting the benefit for 39 consecutive weeks.

It will be paid as a loan if you get the qualifying benefit on or after 7 July 2017.

Print entire guide

Related content

The Most Important parts which no body seems to refer to or talk about the Information on the Government website states which has been there since January 2018 at least maybe longer?


What type of SMI you can get

Whether you can get SMI paid as a benefit or as a loan depends on when you get, or are treated as getting, your qualifying benefit.

So what are the qualifying benefits?

These are:

It then goes on to say:

What type of SMI you can get

Whether you can get SMI paid as a benefit or as a loan depends on when you get, or are treated as getting, your qualifying benefit.

It further states:

If you get another qualifying benefit

Your SMI will be paid as a benefit if you get another qualifying benefit before 7 July 2017. You must have been getting the benefit for 39 consecutive weeks.

It will be paid as a loan if you get the qualifying benefit on or after 7 July 2017.

Based on the above I understand that my SMI should remain a Benefit because I was in receipt of Income related ESA prior to 7th July 2017 for more than 39 week. Are there any other people in the same position as myself? Has anyone got in touch with their MP, a Solicitor or a Barrister?If so please get in touch. 

Many Thanks

Heavenhelp








Replies

  • Lasian_ScopeLasian_Scope Member Posts: 660 Pioneering
    Hi @heavenhelp

    I can see you have already seen our recent discussion about SMI and commented on it, and have a post in our ask a benefits advisor category. Have you had a look at our frequently asked questions about SMI page, including the part about getting advice on your personal situation?

    Hopefully the benefits advisor will be able to comment soon, but they do have many requests for advice so there might be a bit of a wait.  In the meantime, other members may be able to comment on their own situations.

    I hope this helps!
  • [Deleted User][Deleted User] Posts: 0 Pioneering
    Hello Heavenhelp

    For information, Scope has raised the issue of Support for Mortgage Interest as a loan, with the government. Their reply is very much what is written in the second document below - it is government policy not to pay mortgage interest on the basis that is no longer  fair to tax payers who are unable to afford their own house. This applies across all means-tested benefits and all geographical areas of the country, irrespective of whether house prices are rising in that area and irrespective of the situation of the mortgagee on means-tested benefits. 

    http://www.legislation.gov.uk/uksi/2017/725/contents/made

    http://www.legislation.gov.uk/uksi/2017/725/pdfs/uksiem_20170725_en.pdf

    On your specific query about whether you too are affected by the change given that your Support for Mortgage Interest was in payment before July 2017, I'm sorry to say that yes, you are still affected because this is being introduced across the board. The relevance of the July 2017 date appears to be just that that is a date 39 weeks before the date in April 2018 when the new rule came in - so anyone who claimed benefit later than 7 July 2017 could not "serve" the 39 weeks waiting period before the loan system's introduction. 

    People often ask us to whom they should write with their concerns about changes in welfare benefits legislation.
    Politicians with a specific interest  this area of legislation are your own MP, the Chairman of the Work and Pensions Select Committee in the House of Commons, Frank Field, and the Secretary of State for Work and Pensions, Esther McVey.

    http://www.frankfield.co.uk/
    https://www.parliament.uk/biographies/commons/esther-mcvey/4084https://www.parliament.uk/get-involved/contact-your-mp/

    We are receiving lots of calls on the Helpline from people who are affected by this change, and I would definitely agree with Lasian_Scope that it's a good idea to try (and it may be difficult) to find an appropriate professional adviser - an independent financial adviser for example - to help you to set out your various options before you sign up for the government loan to meet your mortgage interest payments.  


    Gill_Scope

    Scope Helpline Benefits and Finance Specialist















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