Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 25 March 2024 to Question 19031 on Universal Credit: Housing, for what reason there are different qualifying criteria for (a) Support for Mortgage Interest and (b) support that homeowners receive in respect of service charges.

Support for Mortgage Interest (SMI) and help with service charges cover different costs and different eligibility criteria apply.

SMI is paid at a rate that the lending industry generally accept as sufficient to avert the threat of repossession. This help is often significantly less than the homeowner’s contractual liability, although eligibility was recently extended to assist homeowners with rising interest rates. While SMI provides support at the point of need, this help is in the form of an interest-bearing loan that is recoverable from equity when the property is sold.

Eligible service charges are met in full and this help is in the form of a non-recoverable benefit.

Given these differences the Department see no compelling argument for aligning entitlement rules.