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<p>The rate of SMI we pay is based on the Bank of England average published rate and
recently increased from 2.09% to 2.65% in May 2023. Any further changes will occur
when the average differs by 0.5 percentage points or more from the rate in payment.</p><p>SMI
is intended to provide reasonable support by making a contribution towards mortgage
interest to protect claimants against the threat of repossession.</p><p>To support
low-income mortgage borrowers with rising interest rates, from April 2023, we extended
the support SMI provides by allowing those on Universal Credit to apply for a loan
after three months, instead of nine. We also abolished the earnings rule to allow
claimants to continue receiving support while in work and on Universal Credit.</p><p>For
those who need additional support the Government is providing an additional £1 billion
of funding, including Barnett impact, to enable a further extension to the Household
Support Fund in England over the 2023/24 financial year. In England, this scheme will
be backed by £842 million, running from 1 April 2023 to 31 March 2024, which local
authorities will use to help households with the cost of essentials. It will be for
the devolved administrations to decide how to allocate their additional Barnett funding.</p>
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