Sarah O’grady of the Daily Express has revealed jobless homeowners would have to hand over a share of of the value of their property in return for taxpayers help to pay their mortgage under new government plans.
The move changes the Support for Mortgages Interest scheme from a benefit to a loan
People would get help with payments indefinitely but the state would recoup some of the money when the property was sold.
The Department of Work and Pensions confirmed on Monday 4th November there are plans to claw back the money.
A source said”We give money to people with large assets which are inherited by their children. Better to say,’We will help you stay in your home but the money must be returned.”
It would save millions on the welfare bill but would be controversial.
Opponents fear ministers would use the equity in people’s homes to fund other areas of the welfare state.
It will be seized upon by the left as further evidence of the heartless Tory policies. In return for paying towards the mortgages of unemployed homeowners the state would recoup some of the money when the claimant died or sold the property.
Other opinion is that it is not as draconian as it first sounds. Surely it is better to help people remain in their own homes when they are in difficulty than face the trauma of mortgage default and repossession?
Turning a benefit into a loan is in line with the government’s attitude to welfare reform, which has personal responsibility rather than dependence on the state at its very hear.
It seems there won’t be anything the welfare reforms won’t leave alone!!!.