Under the provisions of the supplementary welfare allowance (SWA) scheme, a weekly supplement may be paid in respect of rent or mortgage interest to people in receipt of social welfare or health board payments. Entitlement to a supplement is determined by the health boards and my Department has no role in determining individual entitlement.
In assessing a person's entitlement to a rent supplement, all cash income must be taken into account in order to determine eligibility and the rate of supplement to be awarded.
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 towards their accommodation costs.
The SWA rate for an adult and two children is £88.80. All cash income in excess of this amount is calculated as means when determining entitlement to a rent supplement. This amount is then added to the £6 minimum contribution and deducted from the amount of rent payable. Any increase received in social welfare payments will therefore result in a decrease of rent supplement.
The legislation also enables the Minister to make regulations prescribing the circumstances and conditions under which a supplement may be paid, the class or classes of persons to whom a supplement may be paid and the amount of supplement that may be paid, and this has been done in SI 382 (Social Welfare (Consolidated SWA) Regs.) of 1995.
Article 9 (2) (g) (iii) of the regulations requires the health board to be satisfied, in deciding entitlement to a rent supplement, that the rent payable by the applicant "is just and proper having regard to the nature, character and location of the residence".
In order to comply with this legislative provision, each health board is required to set reasonable maximum rent levels in respect of the various classes of persons, as a basis for calculating the amount of rent supplement payable.
The person concerned has been awarded deserted wife's benefit (DWB) of £67.00 plus child dependant allowance (CDA) of £34.00 in respect of her two children, giving her a total weekly income of £101.00.