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Save me from the madness!

SMI changes - 43% stopping claiming

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Interesting article. With 43% of claiments rejecting the changes of the money becoming a loan and so stopping claiming I feel it really shows that a lot claiming it didn't really need it and in effect taxpayer money was being given to people unnecessarily! Anyone genuinely claiming faced with the choice bankrupt/homeless or accept loan would accept the loan.

https://www.manchestereveningnews.co.uk/news/uk-news/mortgage-benefit-smi-scrapped-loan-14706149.amp

Nice to know money has been taken from my kids to fund this poorly targeted benefit in the past.

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Actually seems like a higher proportion rejecting, although the article cites difficulty contacting many claimants.
 

Quote

Of those successfully contacted by telephone, 45,000 have declined the loan - some 60% of all those contacted so far - and 11,000 claimants are undecided.

 

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yeah well, in the past they payed it at a predetermined interest rate which in reality was a lot higher than the claimants were paying. The extra went on sky subs 

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Actually article says it's 60% of those contacted [or 43% of total claimants] that have said NO.

Makes you wonder what the result would be if housing benefit [or that part or even all of UC] was transformed into a loan.

Student loans mechanism is already set up and functioning to administer it with loans only paid from later earnings over a threshold. [Only] if Labour were to suggest this would it be considered acceptable I suspect but end of the day, money saved would be a reduction in spending of money to be paid by furure generations of the poor and hard working families so why not.

<Ponders> What percentage declining that would reduce the UK gov deficit to a surplus?

 

Quote

Of those successfully contacted by telephone, 45,000 have declined the loan - some 60% of all those contacted so far - and 11,000 claimants are undecided.

From the link in OP.

ETA:

45k=60% ==> The 11k undecided is therefore 15%+

So of those contacted ONLY 25% have said YES they'll take the loan.

 

Edited by ebull

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8 hours ago, Save me from the madness! said:

Interesting article. With 43% of claiments rejecting the changes of the money becoming a loan and so stopping claiming I feel it really shows that a lot claiming it didn't really need it and in effect taxpayer money was being given to people unnecessarily! Anyone genuinely claiming faced with the choice bankrupt/homeless or accept loan would accept the loan.

https://www.manchestereveningnews.co.uk/news/uk-news/mortgage-benefit-smi-scrapped-loan-14706149.amp

Nice to know money has been taken from my kids to fund this poorly targeted benefit in the past.

Indeed. We, here, always suspected this, but those numbers are damning.

One would hope that the government would WAKE UP after seeing this, and go a very serious re-examination of other benefits in the light of these alarming statistics. A lot more could be means-tested.

 

Also, the article is disingenuous - all claimants have had at least two letters sent to them starting in January, ages ago. The article is screaming about people being successfully or unsuccessfully telephoned, but they've ALL already been contacted in writing.

 

 

Edited by mrtickle

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15 hours ago, mrtickle said:

Indeed. We, here, always suspected this, but those numbers are damning.

One would hope that the government would WAKE UP after seeing this, and go a very serious re-examination of other benefits in the light of these alarming statistics. A lot more could be means-tested.

 

Also, the article is disingenuous - all claimants have had at least two letters sent to them starting in January, ages ago. The article is screaming about people being successfully or unsuccessfully telephoned, but they've ALL already been contacted in writing.

 

 

The article is screaming about people being successfully or unsuccessfully telephoned, but they've ALL already been contacted in writing.

 

My conclusion from this is that a very large proportion of claimants are not actually living at the address for which they are claiming mortgage interest benefit. 

My second conclusion is that the new loans are still a taxpayer funded gift to people who are already in the wealthiest quartile of society. An interest rate linked to gilt rates is 1.4%. Compare with student loans of 6% and you can immediately see whose side government is on. Wealthy older homeowners win. Young renters pay for it. 

 

 

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8 hours ago, ingermany said:

My second conclusion is that the new loans are still a taxpayer funded gift to people who are already in the wealthiest quartile of society. An interest rate linked to gilt rates is 1.4%. Compare with student loans of 6% and you can immediately see whose side government is on. Wealthy older homeowners win. Young renters pay for it. 

Still a sod of a lot better than just gifting the money though.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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