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[JohnJ26]

I currently get incapacity benefit plus a small private pension, but because my allowable mortage interest plus the IS rate exceeds those, I get IS and the housing costs paid.

Up until now, they have paid the allowable interest in full to the lender and paid me an amount equivalent to the IS rate less the private pension.

But they are now changing it. They say that from now on, they are going to pay me the IB in full plus 10p per week in IS, and deduct from the the interest payable to the lender an amount equivalent to my private pension plus the difference between the IB and IS rate, allowing for the 10p.

The net result is that overall, they pay exactly the same amount of money as they did before, the difference being that they will send me some of the money they used to pay to the lender, and I will have to pass it on to the lender.

Does anyone know what the purpose of this is?

[Administrator]

The calcualtion should be, some figures are guessed?

Your allowance £91.80
Your Interest £39.20

Total due £131 weekly

Less your income?

Incapacity £89.80
Pension £10.20

Total £100

Difference £31 (£131-£100)

£30.90 Would go directly to your lender and you would get 10p as proof of your entitlement to Income Support.

You will have to pay the extra £8.30 (£39.20-£30.90) mortgage interest due yourself directly to your lender.
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