IS20 - A guide to Income Support

Making a claim

Deductions from benefit paid direct to a third party (Third Party Deductions Scheme)

Mortgage interest

If you are buying a home and are paying a mortgage
After the appropriate qualifying period has been completed, your Income Support may include an amount for mortgage interest. This will be paid direct to your lender if they are a member of the mortgage interest direct scheme. Most lenders, including banks and building societies, have joined the scheme. [Legislation (43)]

We know who they are and you do not have to tell us if your lender is a member. Third party deduction arrangements cannot apply if your lender has chosen to opt out of the mortgage interest direct scheme.

If you have more than one mortgage which qualifies for help, payments will be made in respect of each loan to the appropriate lender.

If your mortgage is in arrears you will need to make your own arrangement with the lender to clear these arrears.

If your lender is not covered by the mortgage interest direct scheme
We may still pay any Income Support due to you for mortgage interest direct to your lender if your mortgage repayments are in arrears. A standard sum can be deducted from your benefit towards any arrears.

For further information get information sheet IS8 Home owners – help with housing costs at your Jobcentre Plus office or social security office.

Care homes

If you live in a care home, you may be getting Income Support. If you have failed to budget for the home charges, an amount of your benefit may be paid direct to the care home. You will be left with an amount (at present £19.60 per week) for your personal expenses.

For more information see ‘Help if you live in a care home’.

Hostel charges

If you live in a hostel, your housing benefit may be paid direct to the hostel from the start of your claim. Charges for meals, fuel and laundry, which may be included in the hostel fee, but not in your housing benefit, may also be paid direct from your Income Support from the outset of your claim. You will be left with an amount for your your personal expenses.

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