Should the State step in to give more help to home owners who fall on hard times and can’t keep up with their mortgage payments?
That was the question raised in Tynwald by backbencher Bill Henderson (Douglas North) who called for people with mortgages to be entitled to the same level of benefit as those in rented accommodation or social housing.
Mr Henderson suggested there was an imbalance - although he accepted that benefits should not be used to help someone acquire a capital asset.
Social Care Minister Chris Robertshaw told Tynwald that the issue was one that would be addressed in the root and branch review currently being carried out of the island’s social security and housing policies.
He explained help was currently provided with interest payments on the basis that a home owner should be able to arrange for a temporary capital-repayment holiday with their mortgage provider in the event of their losing their job. But he said the changing economic environment had created problems.
‘In a growing economy, with no credit restrictions, it was reasonable to assume owner-occupiers could agree revised terms with their lenders. However, we now have a risk-averse banking system, pressure on house prices and lower availability of jobs - all of which serve to make it harder for owner-occupiers to renegotiate their mortgage commitments,’ he said.
Tynwald heard there are currently 224 owner-occupiers claiming Employed Person’s Allowance but to date only one has raised concerns that it does not provide adequate support. ‘We will revisit the EPA scheme rules to try to ensure they deliver the desired outcome,’ he added.