Accordingly, there is no need for health boards to set higher levels of maximum rents for the purposes of the supplementary welfare allowance rent supplement scheme.
I am concerned to ensure that increases in maximum rent levels should be set by the health boards in response to rises in market rent levels. However, it appears that these increases may actually have been driving up rents. In the circumstances, I decided to maintain the maximum rent levels set by the health boards at their current levels until the end of December 2003.
Regulations giving effect to this were introduced on 22 November 2002. I am satisfied that rather than having an adverse impact on social welfare recipients in the private rented sector, this change will improve their position in acquiring accommodation. Setting higher maximum rent limits than are justified by the open market would distort the rental market, leading to a general rise in rent levels that would disadvantage people on low incomes.
If an individual is unable to secure accommodation at or below the applicable maximum rent level it is open to the health board to provide a payment above the maximum level as an exceptional measure for a limited period. This measure is designed to provide the person concerned with an opportunity to secure alternative accommodation at the applicable rent level. My Department is not aware of any case where the change in relation to the maximum rent levels has resulted in individuals being made homeless.
The effects of the change are being monitored on an on-going basis by my Department. In this regard the health boards are required to notify my Department of instances where supplements are put in payment in cases when exceptional circumstances are involved.
All aspects of the current system of rent supplements are being reviewed in the context of a review of the supplementary welfare allowance scheme which is currently under way in my Department.