Denis Foley
Question:101 Mr. Foley asked the Minister for Social Welfare the amount of money paid by each of the eight health boards in supplementary rent allowance in each of the years from 1993 to 1995. [13703/96]
Written Answers. - Social Welfare Benefits.
Detailed information on expenditure on rent and mortgage interest supplements on a health board basis was provided for in 1994, following the introduction of a new system for the collection of data relating to the supplementary welfare allowance scheme. Information prior to 1994 is estimated and is only available on a national basis. The available information on expenditure on rent and mortgage interest supplements for the years in question are set out in the following tabular statement.
In July 1994, following concern caused by the escalating costs in relation to rent and mortgage interest supplements, the above group was established by a Government decision to report to the Minister for Social Welfare on the role of SWA in relation to housing. The group was comprised of representatives of the Departments of Social Welfare, Health, Environment, Finance, health boards and local authorities.
The report outlined the origins of rent and mortgage supplementation under the SWA scheme and identified the possible factors underlying the increased expenditure on the supplements in recent years. It also looked at the broader social housing picture, including voluntary housing and its interaction with the SWA scheme, and examined issues arising in the use of SWA as a housing support.
Over the past five years, SWA has become a major form of housing support. Between 1989 and 1995, the total expenditure on rent and mortgage supplements increased from £7 million to some £60 million.
During 1995 the average number of households in receipt of payments in any month was in the region of 32,000 for tents and 7,000 for mortgagres. This represents one third of all privaterented households in the State.
The review group identified the SWA scheme as a flexible means of responding to housing needs for both tenants and mortgage holders and recognised that SWA housing supplements are now a mainstream housing support mechanism, operating outside the framework of overall housing policy. A fundamental difference between the SWA and the local authority approach in the allocation of housing resources was identified in that once a housing need is established it is met immediately under the SWA scheme whereas the local authority can only meet need on a priority basis in the light of available resources. As a consequence, SWA meets the needs of those deemed to have the lowest priority and can be a cost effective means of providing housing for single people and those unable to meet their housing needs from their own resources.
This situation highlights the need for an integrated approach to the allocation of housing resources by a single agency within a single legislative framework to ensure better value for money and a more efficient use of resources. The use of private rented accommodation by the State to meet housing needs should be fully integrated with existing housing policy.
Following the publication of this Housing Review Group report, an inter-departmental committee under the aegis of the Department of the Environment, and with representatives from the Departments of Health, Social Welfare, and Finance, was established to examine the main issues arising from the report and the transfer of the administration of rent and mortgage supplementation to the local authorities in line with a commitment in the Government programme.
The first meeting of this group was held on 27 March 1996 and the committee will report to Government in due course.
Year 1993
|
Rent Supp. |
Mort. Supp. |
Total |
|
|
£m. |
£m. |
£m. |
|
|
TOTAL £m |
38.7 |
8.2 |
47.9 |
Year 1994
|
Health Board |
Rent Supp. |
Mort. Supp. |
Total |
|
£m. |
£m. |
£m. |
|
|
Eastern |
25.990 |
4.846 |
30.836 |
|
Midland |
1.352 |
0.195 |
1.547 |
|
Mid-Western |
2.250 |
0.478 |
2.728 |
|
North-Eastern |
1.489 |
0.775 |
2.264 |
|
North-Western |
1.352 |
0.195 |
1.547 |
|
South-Eastern |
2.313 |
0.511 |
2.824 |
|
Southern |
5.948 |
1.184 |
7.132 |
|
Western |
4.193 |
0.841 |
5.034 |
|
TOTAL £m |
44.887 |
9.025 |
53.912 |
Year 1995
|
Health Board |
Rent Supp. |
Mort. Supp. |
Total |
|
£m. |
£m. |
£m. |
|
|
Eastern |
30.89 |
5.36 |
36.25 |
|
Mid-Western |
2.60 |
0.52 |
3.12 |
|
South-Eastern |
2.87 |
0.56 |
3.43 |
|
Southern |
5.87 |
0.80 |
6.67 |
|
Midland |
1.67 |
0.23 |
1.90 |
|
North-Eastern |
2.26 |
0.87 |
3.13 |
|
Western |
5.13 |
0.86 |
5.99 |
|
North-Western |
1.67 |
0.56 |
2.23 |
|
TOTAL £m |
52.96 |
9.76 |
62.72 |
The main reasons for the increased expenditure on rent and mortgage interest supplements
(1)Budgetary Increases
In recent years special increases in excess of the rate of inflation have been provided to SWA recipients.
(2)Increases in the Live Register
Increases in the live register have increased the claimant base for SWA payments for supplements and exceptional needs payments.
(3)Increase in the number and cost of rent and mortgage supplements
Increased expenditure on rent and mortgage supplements can be attributed to increased unemployment, the lack of availability of local authority housing and the demand led nature of SWA rent supplementation.
(4)Changing family circumstances
The growth of marriage breakdown and the increase of one parent families have lead to a greater demand for rent and mortgage supplements.
(5)Retention of secondary benefits
Participants on the community employment schemes, back to work scheme and VTOS educational scheme (no longer included in live register figures) can retain any secondary benefits to which they were entitled to (or to which they may become entitled) during their participation on the scheme. Such secondary benefits include rent and mortgage interest supplements, diet supplements, and the back to school clothing and footwear allowance under the SWA scheme.