Key Post Changes to Rent and Mortgage Interest Supplements from Jan 2011

Discussion in 'Welfare and state benefits' started by gipimann, Jan 3, 2011.

  1. gipimann

    gipimann Frequent Poster

    Posts:
    4,599
    While Budget 2011 didn't make any changes to the Rent and Mortgage Interest Supplement (RMIS) schemes per se, there will be changes on foot of the budget reductions to SW rates of payment.

    When calculating entitlement to RMIS, the household income (e.g SW) is compared with the Supplementary Welfare Allowance rate for the family size. If there is a difference between the two amounts (called "income in excess"), the RMIS applicant is expected to pay that difference, plus the minimum contribution towards the rent or mortgage.

    A simple example to illustrate:

    Single Person on Invalidity Pension (2010 rates) - 201.50
    Single SWA rate - 196.00
    Income in excess 5.50

    Applicant is expected to pay the income in excess (5.50) + the minimum contribution of 24 euro per week towards their rent or mortgage.

    For several years, the SWA rate has been the same as Jobseeker's Allowance/Benefit, Illness Benefit, Disability Allowance and One Parent Family Payment. There was no income in excess if there was no other income or savings to be assessed.

    Budget 2011 reduced the Personal Rate for the SW schemes listed above by €8 except for SWA which was reduced by €10.

    This means that people whose incomes are one of the schemes listed now have income in excess of €2pw which must be paid towards rent or mortgage. As a consequence, RMIS entitlements for many customers will be reduced by €2 pw or €8.67 per calendar month.

    Changes take effect from this week, 3rd January 2011.
     
  2. gipimann

    gipimann Frequent Poster

    Posts:
    4,599
    Changes to Rent and Mortgage Interest Supplement 2012

    2012 Update:

    2012 change to Mortgage Interest Supplement (MIS)

    - Additional qualifying rule:
    - MIS will not be awarded unless the customer has engaged with the lender and has entered into, and is complying with, an alternative payment arrangement for a cumulative period of not less than 12 months.
    - The 12 month period commences when the alternative payment arrangement is in place, not when the customer first contacts their lender.
    - Applies to all new claims made on or after 18th June 2012. It will also apply if you have previously received MIS but make a new application after 18th June.

    2012 changes to Rent Supplement:
    - Income from Home Help is now assessed as means (subject to any disregards for part-time working). Before 2012, income earned as a Home Help was fully disregarded
    - Rent Limits were reduced from Jan 2012 for new tenants and were reduced for existing tenants as their claim was reviewed during the year

    2012 change to Rent and MIS:
    - New minimum contributions :
    - €30 pw for a single person/one-parent household
    - €35 pw for a couple, with or without children

    Calculating Rent or MIS entitlement:

    The method of calculating Rent Supplement or MIS remains the same.

    When calculating entitlement, the household income (e.g SW) is compared with the Supplementary Welfare Allowance rate for the family size. If there is a difference between the two amounts (called "income in excess"), the RMIS applicant is expected to pay that difference, plus the minimum contribution towards the rent or mortgage.

    A simple example to illustrate:

    Single Person on Invalidity Pension (2012 rates) – 193.50
    Single SWA rate - 186.00
    Income in excess 7.50

    Applicant is expected to pay the income in excess (7.50) + the minimum contribution of 30 euro per week towards their rent or mortgage, total €37.50

    Amount of Rent Supplement paid = weekly rent minus €37.50
    Amount of MIS paid = weekly interest portion of mortgage minus €37.50

    More information:
    Rent Supplement
    http://www.welfare.ie/EN/Schemes/SupplementaryWelfareAllowance/Pages/RentSupplement.aspx

    Mortgage Interest Supplement
    http://www.welfare.ie/EN/Schemes/SupplementaryWelfareAllowance/Pages/MortgageInterstSupplement.aspx