Written Answers. - Social Welfare Benefits.
Paul McGrath
Question:
52
Mr. McGrath
asked the
Minister for Social, Community and Family Affairs
if his attention has been drawn to the recent recommendation that the rent allowance scheme, funded by his Department and administered by the health boards, should be transferred to local authorities; if he has discussed the proposal with the relevant Departments; and if he will make a statement on the matter.
[19078/99]
Liz McManus
Question:
58
Ms McManus
asked the
Minister for Social, Community and Family Affairs
the plans, if any, under way at his Department to introduce a housing allowance, in view of increasing rent costs, to people on low pay who do not qualify for a supplementary welfare allowance and who find it virtually impossible to cover their rent costs; and if he will make a statement on the matter.
[18867/99]
I propose to take Questions Nos. 52 and 58 together.
The recommendation to which the Deputy refers was contained in the report of an interdepartmental committee which was published in August of this year. The committee was established in 1996 under the aegis of the Department of the Environment and Local Government, with representatives from that Department and from the Departments of Health and Children, Finance and Social, Community and Family Affairs. Its brief was to consider the issues arising in the transfer of the administration of rent and mortgage interest supplements under the supplementary welfare allowance scheme and to make recommendations.
The Government has considered the interdepartmental committee's report and has decided in principle to implement its main recommendations.
It is not intended to transfer the present rent supplement scheme to the local authorities. Instead, a new rent assistance scheme will be put in place, operated by the local authorities, to serve people with long-term housing needs, including those who currently rely on SWA rent supplements on a long-term basis. Income support elements of the SWA scheme, including assistance with rent costs on a short-term basis, will continue to be met though the social welfare system.
The Government has asked my colleague, the Minister for the Environment and Local Government, to submit detailed proposals for the new scheme so that final decisions on the implementation of the new arrangements can be taken. It is expected that this will take about six months and a further two year time frame is envisaged for introducing the new arrangements once the detailed proposals have been agreed. This will deliver an important element of the Government's An Action Programme for the Millennium, which commits the Government to the maximum co-ordination of housing policy under one Department.
The second Bacon report, published by my colleague the Minister for the Environment and Local Government in March 1999, found that rents have been rising in line with trends in house prices. The report concluded that this reflects excess demand for accommodation generally and the optimal course of action is to expand supply.
The provision of new allowances for employed persons in private rented accommodation would not help to increase the supply of such accommodation. To introduce a housing allowance in the context of excess demand in the housing market generally would be likely to give rise to further increases in rent levels.
