Benefits to rise despite deflation

edited 9 December 2009 at 1:59PM in Benefits & Tax Credits
10 replies 8.9K views
Former_MSE_GuyFormer_MSE_Guy Former MSE
1.7K Posts
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 9 December 2009 at 1:59PM in Benefits & Tax Credits
This is the discussion thread for the following MSE News Story:

"Chancellor Alistair Darling has announced that Basic State Pension will rise by 2.5% next April."

Replies

  • dmg24dmg24
    33.9K Posts
    ✭✭✭✭✭
    As the 'story' is only three lines long I'll paste it over!
    As part of his Pre-Budget report today, the he also said child and disability benefits will both rise by 1.5% at the same time.
    These usually rise in line with RPI inflation, which is currently negative.

    More to follow in our round-up later this afternoon...

    They have missed one very important piece of news for many:

    Support for Mortgage Interest will remain payable at 6.04% for a further six months.
    Gone ... or have I?
  • The news on SMI is excellent and will be a relief to alot of people...
  • DMG do you have a link to anything official for this,cant find anything and missed the PBR on tv.
    many thanks..John
  • TOBRUKTOBRUK Forumite
    2.3K Posts
    If you go to the bbc website you can download the pre budget report. On page 86 it states:
    5.54 The Support for Mortgage Interest (SMI) scheme has helped homeowners who have
    experienced a fall in income to remain in their homes. The standard interest rate used to
    calculate SMI will be maintained at 6.08 per cent for a further six months, benefiting
    around 220,000 homeowners.19 Once the freeze ends, the Government intends to move
    towards a fairer, more affordable approach, that more closely reflects mortgage interest rates.
  • I have just received a letter today to inform me that as of Jan 2011 all mortgage assistance for job seekers will be stopped.

    If you pay rent to the council or private landlord then thats ok, but if you own your house, regardless if mortgage is less than rent - there is no payment

    When will this government start to asses people on the benefits they get? If i sell my house and move to a private landlord it will cost them more. I am not proud or happy being on benefits but when i do get work again I will be one of the high end earners who in turn ends up paying a ridiculous amount of tax. The government should set a standard rate for mortgage assistance that would be in line with what the average rent is for the area.
  • NASA_2NASA_2 Forumite
    5.6K Posts
    If you own your house then you have access to capital - a pretty big difference between those who rent and those who own their house and pay a mortgage I would say.

    I dont see why I should pay for your mortgage when you could use the house to gain capital or sell it altogether and live on the proceeds.
  • chiefwhiff wrote: »
    I have just received a letter today to inform me that as of Jan 2011 all mortgage assistance for job seekers will be stopped.

    If you pay rent to the council or private landlord then thats ok, but if you own your house, regardless if mortgage is less than rent - there is no payment

    When will this government start to asses people on the benefits they get? If i sell my house and move to a private landlord it will cost them more. I am not proud or happy being on benefits but when i do get work again I will be one of the high end earners who in turn ends up paying a ridiculous amount of tax. The government should set a standard rate for mortgage assistance that would be in line with what the average rent is for the area.

    read the letter again,its NOT all mortgage asst. for all jsa claimants,it simply means that in jan 2011 YOU will have had the 2 years help that you are entitled to,after all its not unreasonable to expect a homeowner to get a job within 2 years even in todays mess
  • Good more money for me then..
  • laineygirllaineygirl Forumite
    43 Posts
    Part of the Furniture Combo Breaker
    you said that you dont see why you should help me pay my mortgage because I have an asset. Fair enough, but I cannot use this asset. I claim benefits and nobody will give me equity release on my property so that I can rise the money to pay all my creditors. If I could do that then I would have been able to pay my mortgage, escape being a debtor and live a reasonable life.
    On the other hand Why should I pay all your rent (which happens if you are in rented accomadation) If I was evicted I couldn't get a reference to rent a property and the council have no properties available so then I would be homeless so are you just looking at it from 'I'll be all right and people who own houses are just scroungers who are having something paid for them by me' perspective
    We worked hard to get our home and everything in it. It wasn't my husbands' fault he was made redundant and because he's in his late 50s finding a job is a non starter he's competing with younger people who have families and they are the ones who get the jobs. I'm unable to work through ill health.
    Everybody needs help when out of work, dont be-grudge the little help mortgage owners get because it'll be no where near the rent you'll be getting paid. I have to find nearly £500 per month to pay my mortgage and then whats left pays for everything else. Believe me its not a lot and were scraping by. Its only the interest DWP pay.
    I love my home, have lived here for 15 years and every penny we had when we working went into it and the thought of loosing it is frightening. We paid our taxes when we worked and we get damn little help now and WE'RE made to feel bad about the little we do get.
    So cut the mortgage payer a little slack will you, We're struggling, probably worse than you are. You wont loose your home we will.
  • NASA_2NASA_2 Forumite
    5.6K Posts
    I said that over a year ago to be fair.

    I'm now a homeowner so I have changed my mind just in case I ever need help with my mortgage. Then it will be fine.
This discussion has been closed.
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