Later Life  

Pensioners face repossession due to benefit change

“While those able to do so should seek regulated financial advice about their options, the government must ensure that those unable to pay for this advice are given adequate support so they can make the right decision for them.”

A DWP spokesperson said: “This reform means we will continue to provide a safety net to help homeowners avoid repossession.

]"However, over time, someone’s home is likely to increase in value, so it’s reasonable that anyone who has received financial help towards their mortgage should be asked to pay that back if there is available equity when the property is sold.

“We are giving people plenty of time to consider their next steps. We have already started writing to those on SMI to make sure they are aware of the changes and to let them know that they can get more information over the phone from a specialist service we have put in place.”

Adrian Kidd, IFA at London-based Radcliffe and Newlands, said: “If you have a situation where you are receiving assistance towards that and it is going to be pulled, that is not going to end well.

"If you can’t afford to pay your mortgage, how are you going to afford to pay someone to give you advice? The situation will only get worse.

“[It suggests] the government is not going to give you much help due to bigger problems, such as Brexit.

"It is a massive negative for the people who were eligible to get that, and overall very negative in terms of the bigger picture. More and more of these negative pieces are coming up.”

simon.allin@ft.com