Dáil Éireann debate -
Tuesday, 22 Mar 1994

Vol. 440 No. 4

Written Answers. - Rent Supplement.

Ivor Callely

Question:

116 Mr. Callely asked the Minister for Social Welfare the total number of recipients of rent supplement; the total value of rent supplements paid by him in 1993; if his attention has been drawn to the number of people who are encouraged to leave their family home to avail of rent supplements and other benefits; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

A new statistical system for the supplementary welfare allowance scheme was introduced on a phased basis in 1993 and is now fully operational in the Southern, Western, North-Eastern, Mid-Western, South-Eastern and Midland Health Boards. The North-Western Health Board will provide similar statistical analysis from its own computer system. The introduction of the system commenced in the Eastern Health Board towards the end of 1993 but data will not become available until later this year.

It is estimated that there were some 28,500 recipients of rent supplement in the seven health boards outside the Eastern Health Board area in 1993 at a cost of some £14 million in that year. The Eastern Health Board is unable to provide figures for the number of recipients in 1993 but estimates that there were 14,663 recipients of rent supplement at the end December 1993. The Eastern Health Board estimate the cost of rent supplements in 1993 at some £11.4 million.

In assessing the means of a person who is claiming unemployment assistance and living at home account is taken of the value to that person of free board and lodgings. The practice of relating the value of board and lodgings to the income level of the household in which the applicant resides is designed to take account of different household circumstances in an equitable way and provides a mechanism for targeting scarce resources to those most in need. Abolition of the assessment of free board and lodgings would represent a substantial cost to the taxpayer. A recent estimate of the cost of abolishing the assessment was in excess of £60 million per annum.

A young person living at home who qualifies for unemployment assistance is entitled to a minimum payment of £5 a week. As I announced recently, this is being increased to £10 a week from July.

Recent detailed analysis found no clear evidence to suggest that the current assessment of free board and lodgings was encouraging young people to leave the family home in order to qualify for full unemployment assistance and rent supplement. In assessing applications for rent supplement from young single people who have left the family home health boards will establish that there were valid reasons for the move before paying a rent supplement.