State help for people struggling to pay the mortgage after losing their job has been extended in a bid to cushion the blow of the recession, the Government has announced today.

The waiting period to qualify for the means-tested benefit has been reduced by two thirds from 39 to 13 weeks from today — a move brought forward from April.

And more people will now be eligible for Support for Mortgage Interest (SMI) after mortgages of up to £200,000 were included, double the previous limit and £30,000 higher than the previously planned increase.

The SMI scheme provides mortgage relief to those who are already receiving a means tested benefit, such as income support, pension credit or income-based jobseekers allowance.

Work and Pensions Secretary James Purnell said: “We have changed the rules to make sure even more people can get help with their mortgage payments if they lose their job.

“We have brought in changes as quickly as possible so people don’t have to wait too long for this support.”