The Support for Mortgage Interest (SMI) loan scheme has today been extended to 200,000 additional Universal Credit claimants in efforts to support more households with the cost of living. They will be able to access help towards mortgage interest on their home or certain home improvements worth up to £200,000 after three months on Universal Credit, and they no longer have to be unemployed to qualify.

Today’s reforms, which were announced in the Chancellor’s Autumn Statement, mean claimants will be able to receive the support after just three months of being on Universal Credit. 

In an additional change, they will not have to be unemployed to do this either. They will also be able to re-claim the support if they leave Universal Credit but return within six months. 

Mims Davies, minister for social mobility, youth and progression, said: “The fear of losing your home when you have fallen on difficult times is incredibly stressful and makes getting back on your feet all the more difficult.

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“This increased support is an important lifeline to help provide stability for those who are seeking to find work and move back towards long-term prosperity.” 

Support for Mortgage Interest loans will now be automatically offered to claimants by the Department for Work and Pensions (DWP) if they qualify after three months on Universal Credit – they do not need to do anything to receive this offer.

The loans are designed to help claimants with the interest on mortgages or loans for certain home improvements, such as repairs or improvements to keep their home habitable or to adapt them for people with disabilities, while they are on Universal Credit. 

Even if claimants reject the offer of a loan initially, as long as they are still eligible, they can start claiming it at any point.

Today’s changes come in addition to extensive support with the cost of living, including a year-long extension to the Household Support Fund. Worth over £2billion in its lifetime, the fund is designed to help the most vulnerable with the cost of food and energy essentials. 

The Government is also directly paying £301 to over eight million people on means-tested benefits from April 25 to help with soaring living costs. 

Further payments worth £300 and £299 will be made later in the financial year, whilst additional payments of £300 for pensioners and £150 for disabled people will also be made in 2023, meaning some people will receive up to £1,350 in direct Government support.

To find out more about the eligibility criteria for the cost of living payments, click here.