MPs demand ‘urgent action’ to alleviate housing loan hardship for low-income families

TDT | Manama                                                      

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Citizens face sharp rise in housing loan payments due to unexpected inclusion of extra allowances in calculations. MPs are pressing for a change to this policy, which affects participants in the Land and Loan scheme, a government programme designed to provide affordable housing. The scheme recently opened to applicants dating back to 2004, offering long-awaited hope after a 20-year wait.

However, the sudden inclusion of allowances like social, travel, and phone benefits has nearly doubled payments for some families. MP Zainab Abdulamir and other representatives are demanding that the Ministry of Housing and Urban Planning base payments solely on basic wages.

Allowances

“These allowances are meant to help families with their daily costs, not to pay off housing loans,” they argued, pointing out the added strain on low-income families already struggling with rising living costs.

The Council of Representatives unanimously supported the MPs’ plan yesterday, calling for immediate action to address the issue at their session on 22 October. The proposal emphasises that future payments should rely only on basic wages, excluding any additional allowances.

Citizens were assured their payments would be calculated based solely on their basic pay, but the recent changes have caused instalments to rise significantly. “People were not expecting this, and now many are facing payments that are almost double what they thought,” the MPs said.

The unanimous backing from the Council signals strong support for fixing the housing scheme and helping families in need. The scheme had recently opened to citizens whose applications date back to 2004, but this change has led to more hardship for low-income families, who already cope with rising costs.

Payments

“The gap between payments based only on basic pay and those that include allowances is huge,” the MPs stated. “For families with limited income, this new strain has made a tough situation even worse.”

Citing Articles 68 and 128 of parliamentary rules, the MPs have requested that the issue be addressed quickly at the session on 22 October 2024, under the ‘Any Other Business’ section. They believe action is needed to prevent further hardship for those affected.

A note added to the proposal outlines additional reasons behind it, stressing the need for help for those who have waited over 20 years.