Under the supplementary welfare allowance (SWA) scheme a weekly supplement may be paid in respect of rent or mortgage interest to people who are unable to meet their housing needs from their own resources. Entitlement to a supplement is determined by the health boards and supplements are normally calculated to ensure that the person, after payment of rent or mortgage interest, has an income equal to the rate of SWA appropriate to the family circumstances, less £6. This £6 represents the minimum contribution which clients are required to pay from their own resources. In the calculation of the amount of rent supplement payable, the legislation enables the health board to set rent limits.
The community employment (CE) scheme was launched on 11 April 1994, by the then Minister for Enterprise and Employment, following a review of existing schemes for the unemployed by an interdepartmental policy committee on local development. The highest weekly or monthly outgoing for most people is in respect of their rent or mortgage payments. It was decided that a contribution towards these costs would continue by allowing participants on community employment schemes to retain secondary benefits, and thus to reduce the disincentives arising from the loss of such benefits on taking up employment.