SPOTLIGHT

•You will not get a loan automatically - you have to choose to take one out

•The loan is secured against your home. When you sell your home or transfer the ownership of it to someone else, you must pay back the loan out of any equity that is left over once your mortgage is repaid.

If you’re claiming Income-based Jobseekers Allowance, you can only get SMI for up to two years.

If you get Income Support, Income-related Employment and Support Allowance,Universal Credit or Pension Credit, there’s no limit to how long you can claim SMI for.

Any new claims to SMI will be offered as a loan. This is because there is a 39-week waiting period from the time you claim SMI until your first payment is made and there is now less than 39 weeks before SMI changes from a benefit to a loan so any new claims will receive SMI as a loan, not a benefit. The 39 week rule does not apply to people on Pension Credit.

Before you decide whether an SMI loan is the best option for you and your household, it’s a good idea to seek advice. You can obtain further information by contacting the Money Advice Service on 0300 500 5000 or your local Citizens Advice team.

Jacqueline Lange Welfare Rights Adviser Digby Brown Solicitors.