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Universal Credit: Support for Mortgage Interest

Department for Work and Pensions written question – answered on 5th September 2019.

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Photo of Paul Blomfield Paul Blomfield Shadow Minister (Exiting the European Union)

To ask the Secretary of State for Work and Pensions, what assessment she has made of the effect of the restriction on earned income for eligibility for support for mortgage interest under universal credit on the incentive to work.

Photo of Will Quince Will Quince The Parliamentary Under-Secretary of State for Work and Pensions

The earned income rule for help with mortgage interest on Universal Credit ensures that owner occupier claimants have the right incentives to move into work and increase their hours of work over time where possible.

Universal Credit’s income taper, along with work allowances for qualifying claimants, ensure a strong work incentive is maintained. For certain owner occupiers, the withdrawal of support for mortgage interest means they qualify for the higher work allowance, and so they could earn up to £503 before there is any effect on their Universal Credit award.

My Department has made no formal assessment of the effect of the rule on work incentives.

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