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Eddie_George

Freedom Of Information Request For Amount Spent On Smi To Date

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With the interest rate set at 3.63%, there must be a lot of people having a good chunk of their capital being paid off by taxpayers, as well as the interest. Why hasn`t this rate been reduced in line with current mortgage rates.

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Anyone know the easiest way to do this. What other requests could be made?

SMI = https://www.gov.uk/support-for-mortgage-interest/what-youll-get

Just email this lot

https://www.gov.uk/government/organisations/hm-treasury

There were 225,000 "customers" on it.

32% on fixed rate

28% on trackers

40% on variable rate

They must be raking it in now rates have dropped even further!

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220238/support-for-mortgage-interest.pdf

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Just email this lot

https://www.gov.uk/government/organisations/hm-treasury

There were 225,000 "customers" on it.

32% on fixed rate

28% on trackers

40% on variable rate

They must be raking it in now rates have dropped even further!

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220238/support-for-mortgage-interest.pdf

Cheers!

Edited by Eddie_George

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With the interest rate set at 3.63%, there must be a lot of people having a good chunk of their capital being paid off by taxpayers, as well as the interest. Why hasn`t this rate been reduced in line with current mortgage rates.

Yes that rate is completely wrong. I'm not so sure about SMI though in principal it seems right that people get help with it if they lose their job if private renters can claim housing benefit.

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It is quite funny as if you claim benefits any savings are assumed to be earning a lot more interest - it used to be domething like 12%

Just saw this on a LA website:

If you and your partner are below the qualifying age for State Pension Credit and have between £6,000 and £16,000, it affects how much Housing Benefit and/or Council Tax Reduction you will get. For every £250 (or part of £250) you have over £6,000 we add £1.00 to the income we count each week when working out your benefit.

So if you had 16000 savings you would be assumed to be earning £2080 a year which is 13% of £16000

Yes if you have savings you shouldnt be getting benefits perhaps but it just goes to show that if you have a house, possibly with much much more equity than £16000 you can get paid for having that equity in the form of SMI.

As usual, debt wins over savings.

------

Edited to correct spelling used as sued!

Edited by Longtermrenter

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Okay, I've received my reply for FOI to the DWP on SMI.

Here's what I asked:

“Please can you provide me with the total amount (up-to-date figures) that has been
paid out through the Support for Mortgage Interest (SMI) scheme since its inception.
Furthermore, please provide a breakdown of the figures, including the number of
households that took advantage of the scheme and what types of mortgages they held,
as well as the ages of the recipients. A yearly breakdown would be helpful too. I have
read the 2010 report, so I'm looking for more up-to-date data.”
Here's the reply:
The Department does not hold the full set of information requested. Below I have set out where
a subset of the information can be found on the GOV.uk website and some additional tables
derived from the Department’s forecasting models, administrative data sources, and sample
data provided by the Council of Mortgage Lenders.
Historic expenditure and caseload
Support for Mortgage Interest existed as part of Income Support from 1988. Prior to 1988
amounts for interest payments and other housing costs could be received as part of
Supplementary Benefit.
Note that Support for Mortgage Interest is not always paid as a discrete amount of benefit. It
takes the form of an amount that is taken into account in setting the “applicable amount” used
to assess a claimant’s needs, so cannot be identified separately in accounting data, and is not
always distinguishable from amounts associated with other forms of housing costs.
An annual series of estimated historic and forecast expenditure and caseload for Support for
Mortgage Interest (SMI) from 2004/05 onwards is available on the GOV.uk website, in tables
3a, 3b and 3c of
and-forecast-AS-2014.xlsx. This is accessible through the “Outturn and forecast: Autumn
Statement 2014” link on the 2014 expenditure tables page at
These tables will next be updated shortly after Budget 2015.
Tables 1a and 1b below extend these expenditure estimates back to 1997/98, based on
information derived from the Department’s Quarterly Statistical Enquiry administrative datasets
and held in the models previously used to forecast expenditure on Income Support and
Jobseeker’s Allowance.
14v6y60.png
These estimates may slightly overstate the amount actually spent on Support for Mortgage
Interest for two reasons. Firstly, some other forms of non-mortgage housing costs may be
included (e.g. ground rents, leaseholders’ service charges). This is a small effect for working
age benefits, estimated at only around 5% of the total, but is larger for Pension Credit. The
Pension Credit figures for 2004/05 and beyond presented in the published expenditure tables
have been adjusted to take account of this. In 2004/05 around 15% of the Pension Credit
expenditure associated with housing requirements was not related to mortgage interest.
Secondly, the estimates are based on administrative records of the amounts of housing costs
that are taken into account in the calculation of a claimant's award. Where a claimant would
not have been entitled to any benefit in the absence of an amount for housing costs, the actual
benefit in payment will be less than the amount of housing costs included in the benefit
calculation. This effect is not thought to be significant.
Age Breakdowns
Breakdowns of the Income Support and Jobseeker’s Allowance SMI caseloads by age are
available through the tabulation tool interface at
requirements’ option. A breakdown by age of Pension Credit SMI caseloads is shown in table
2 below. These are derived from the same administrative data source as the 5% tabulation tool
outputs available at http://83.244.183.180/5pc/pc_prim/tabtool_pc_prim.html, aligned to total
caseloads derived from 100% administrative data at

15s69n9.png

The Department does not publish regular statistics on the ESA SMI caseload. Table 3 below
gives an estimated age breakdown of ESA SMI caseload at September 2013. These estimates
are derived from a bespoke scan of the Department’s administrative systems.
dg73i8.png
Types of mortgage
The Department’s administrative data does not identify the types of mortgages held by SMI
claimants as this is not relevant to the calculation of the benefit award. The figures presented
in the 2010 Equality Impact Assessment at
for-mortgage-interest.pdf were estimates based on a sample provided by the Council of
Mortgage Lenders (CML), and applied only to claims where the payment goes directly to the
lender through the Mortgage Interest Direct scheme.
The Department has subsequently received one further sample from the CML. On the basis of
this new sample, it is estimated that in 2013 approximately 50% of recipients had a repayment
mortgage, and 50% had an interest only or part repayment mortgage. The same caveats apply
as for the previous sample, and this estimate should be regarded as illustrative.
Edited by Eddie_George

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"The Department does not hold the full set of information requested"

Well the department needs asking why not.

Do they not have a total for how much this policy costs?

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.........I have read the 2010 report, so I'm looking for more up-to-date data.”

Here's the reply:

The Department does not hold the full set of information requested. ......

Presumably the data was adequate in the 2010 report.

So they hold less data/information under the current government than under the last government?

2010 being the year of the general election.

Edited by billybong

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