Peadar Clohessy
Question:7 Mr. Clohessy asked the Minister for Social Welfare the cost of rent and mortgage supplement under the supplementary welfare allowance scheme for 1994; and if he will make a statement on the cost. [3204/95]
Ceisteanna—Questions. Oral Answers. - Rent and Mortgage Supplementation.
Tony Gregory
Question:17 Mr. Gregory asked the Minister for Social Welfare in view of the reply to Parliamentary Question No.165 on 11 October 1994, if the Revenue Commissioners sought details from his Department regarding landlords in receipt of tenant's social welfare subsidies; if this information was refused; and if he will establish the necessary liaison requested by the Revenue Commissioners.[
Batt O'Keeffe
Question:39 Mr. B. O'Keeffe asked the Minister for Social Welfare his views on the expenditure on supplementary welfare benefits paid out by the health boards on an annual basis and the fact that it has risen from £7 million in 1989 to £55 million in 1994; if he has satisfied himself that such payments represent value for money; if he has done a breakdown on the categories of persons who are benefiting from such payments; and if the State is getting a proper return by way of taxation from private landlords benefiting from such welfare payments. [1170/95]
Hugh Byrne
Question:173 Mr. H. Byrne asked the Minister for Social Welfare when he will act on the commitment to publish the guidelines issued to Community Welfare Officers on the operation of rent supplement schemes; if he will publish the guidelines that predated the present guidelines; the reason any changes have been made in such guidelines; the reason the present guidelines have not been published; the cost for each health board area of the operation of the scheme for each year since 1987; the cost of housing people in bed and breakfast accommodation for each health board area for each year since 1987; the measures, if any, that are taken by him to ensure that payments to landlords for both private rented accommodation and bed and breakfast accommodation are made known to the Revenue Commissioners; and if representations have been made to him by the Revenue Commissioners or the Department of Finance on the matter. [1031/95]
Hugh Byrne
Question:174 Mr. H. Byrne asked the Minister for Social Welfare if landlords in receipt of payments under the rent supplement scheme are under any obligation to furnish tax clearance certificates or to conform to any standards of fire or hygiene safety; the plans, if any, he has in this regard; and if he will make a statement on the matter.[1100/95]
Noel Ahern
Question:175 Mr. N. Ahern asked the Minister for Social Welfare the amounts paid out by health boards on his behalf of 1994 or for the most recent year available in respect of rent allowance and assistance towards mortgage payments; and if he will give details of similar payments for the past five years.[2324/95]
Patrick D. Harte
Question:181 Mr. Harte asked the Minister for Social Welfare the amount paid by each health board to assist home buyers who have mortgage repayment difficulties; and the amount paid in each calendar year for which figures are available. [3173/95]
I propose to take Questions Nos. 7, 17, 39, 173, 174, 175 and 181 together.
This is an extremely important area on which I have a fairly detailed reply. If, at any point, Deputies wish to intervene, I would be quite happy to interrupt my reply but the information I am providing will be useful to Deputies.
Guidelines on rent and mortgage supplementation under the supplementary welfare allowance scheme were issued by my Department to health boards in 1988 for the information of community welfare officers administering this element of the supplementary welfare allowance scheme.
By 1990, these guidelines were considered to offer inadequate information to health boards on issues arising in administering an increasingly complex scheme. Accordingly, my predecessor initiated a review of the guidelines which is now nearing completion. I intend to publish the revised guidelines, but no useful purpose would be served by incurring costs in publishing the now out-of-date 1988 guidelines. However, I have arranged for my Department to send a copy of the 1988 guidelines to Deputies and Senators who request a copy.
Total expenditure on the rent and mortgage supplement element of the supplementary welfare allowance scheme, on a health board basis since 1987, is not available. This type of information was provided for in 1994, following the introduction of a new system for the collection of data relating to the supplementary welfare allowance scheme.
However, the 1994 full year figures are not yet available. Total estimated expenditure for all health boards on rent and mortgage supplementation under the supplimentary welfare allowance scheme for years 1989 to 1994 is set out in a tabular statement which I will make available to the Deputies by circulating it in the Official Report. This statement shows that expenditure has grown from £7 million in 1989 to £52.4 million in 1994.
Private rented accommodation is the type of accommodation normally paid for by community welfare officers by way of a rent supplement. Bed and breakfast type accommodation is not normally relied on by community welfare officers in providing assistance with housing needs under the supplementary welfare allowance scheme. However, arising from their responsibilities under the 1988 Housing Act in respect of homeless people, housing authorities have entered into arrangements with health boards who may meet the needs of homeless people in this way subject to reimbursement of the boards by the housing authority. In Dublin, for example, there is a specialised unit dealing with homeless people and staffed by Eastern Health Board community welfare officers. The unit is part-funded by reimbursement from Dublin Corporation.
The cost of housing homeless people in bed and breakfast on a health board basis is not available for years 1987 to date. However, reimbursements of the local authorities by the Department of the Environment in respect of accommodation for homeless people is set out in tabular statement which I will also make available to all Deputies. This shows that expenditure has increased from £7,000 in 1987 to £1,359,000 in 1994.
Health boards have no function in taxation matters and there is no provision in the legislation for boards to require evidence of tax compliance by the person's landlord in the context of determining entitlement to a rent supplement.Representations were made by the Revenue Commissioners to my Department in 1993 regarding the possibility of obtaining names and addresses of landlords in the Eastern Health Board whose tenants are receiving rent supplements under the supplementary welfare allowance scheme. This information is held by the health boards, who administer the scheme, and not by the Department of Social Welfare. The Social Welfare Acts provide for the exchange of information between certain bodies but it has no specific provision which would allow information to be transferred by the health boards to the Revenue Commissioners.
I understand the Revenue Commissioners have been in discussions with the Department of Finance with a view to taking the necessary powers to obtain the relevant information.
At the end of October 1994, the number of rent and mortgage supplements in payment was 30,900 and 7,200 respectively. In a recent analysis carried out on the source of income of clients in receipt of rent and mortgage supplements it was found that some 60 per cent of clients are in receipt of unemployment payments, 14 per cent are in receipt of basic supplementary welfare allowance, 11 per cent are in receipt of lone parent's allowance, 3 per cent are in receipt of disabled person's maintenance allowance and 3 per cent are in receipt of disability benefit. The remaining 9 per cent are mostly pensioners.
Clearly, considerable State resources are being directed to the private rented sector through the supplementary welfare allowance scheme and it is important that such expenditure should represent value for money and be consistent with the thrust of State housing policy.
In recognition of the increasing role of the supplementary welfare allowance scheme in housing provision and the attendant financial implications, a housing review group chaired by my Department was set up in September 1994 to review the role of the supplementary welfare allowance scheme in housing provision.
The group consists of representatives from the local authorities, health boards, and the Departments of the Environment and Finance. This review will attempt to identify the reasons for the increase in rent and mortgage supplements and to identify the likely trends for the future. It will also consider what is the most cost-effective way of assisting those on social welfare incomes to meet their housing needs. I will consider this matter further when I receive the report of the group in the coming months.
The use of private rented accommodation by the State to meet housing needs should be fully integrated with existing housing policy and this is not currently happening. One of the provisions of the Programme for Government is that all forms of social housing be administered by the local authorities and I will consider along with my Ministerial colleagues, how this can be implemented in the supplementary welfare allowance scheme. The review group findings will provide the necessary factual basis to enable informed decisions to be taken in this complex area.
Expenditure on rent and mortgage supplements under the Supplementary Welfare Allowance Scheme for years 1989 to 1994
|
Year |
Rent supplements |
Mortgage supplements |
Total |
|
£m |
£m |
£m |
|
|
1989 |
6.1 |
0.9 |
7.0 |
|
1990 |
8.6 |
3.6 |
12.2 |
|
1991 |
14.4 |
5.2 |
19.6 |
|
1992 |
23.0 |
7.0 |
30.0 |
|
1993 |
38.7 |
9.2 |
47.9 |
|
1994 |
43.4 |
9.0 |
52.4 |
Amount recouped by the Department of the Environment to local authorities in relation to accommodation for homeless people
|
Year |
Total recouped |
|
£ |
|
|
1989* |
7,000 |
|
1990 |
115,000 |
|
1991 |
377,000 |
|
1992 |
674,000 |
|
1993 |
902,000 |
|
1994 |
1,359,000 |
*No recoupments were made prior to 1989.
I take this opportunity of congratulating the Minister on his appointment and I thank him for his comprehensive reply. What action is the Government prepared to take to provide housing for eligible categories so that the escalating costs of rent supplements can be reduced? Also, has the Minister any plans to review the guidelines on mortgage interest subsidies in view of the fact that mortgage interest and rent allowance will become a huge disincentive to employment?
The real disincentive to employment in many instances is the low level of pay offered to people. A specific case was brought to my attention recently where a young woman, living on her own, is expected to work for £60 net. This woman wants to work but if she was on social welfare and entitled to a rent allowance, she would have an income in excess of £80 per week. Because she is working she does not qualify for a rent allowance and is, therefore, in this trap. This is an area of policy which needs to be addressed fairly quickly. How do we deliver assistance to people for housing needs in a way which does not trap them either in unemployment or in low-paying jobs? I hope the review group to which I have referred in my reply will address that issue and that the recommendations it brings forward will enable us to deal with that. I also thank the Deputy for his good wishes.
Will the Minister ask his colleagues in Government to consider the introduction of a national housing benefit scheme which would be operated by local authorities and which would replace the rent and mortgage subsidy scheme?
In principle I favour that approach. However, I have to wait until the review group has reported on how the variety of schemes — mortgage interest relief which is paid to people through tax, mortgage relief which is available through the supplementary welfare scheme and assistance with housing costs provided by local authorities by way of differential rent — can in practice be incorporated as a housing benefit which would be available to people regardless of whether they are in work or in local authority or private accommodation.
When does the Minister expect that report?
I am expecting it soon.
The time for Priority Questions is exhausted.
A Leas-Cheann Comhairle——
I cannot hear the Deputy on Priority Questions. We will take Question No.8 in the category of other questions.
On a point of order, as the time for Priority Questions is over and as I have a very detailed question on this issue on the Order Paper, will the Chair allow me latitude to ask the Minister one supplementary question?
That latitude is not at my disposal. Only the Deputy who tabled the Priority Question can ask supplementary questions. I regret I cannot be of assistance to the Deputy.