The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent to any person in the State whose means are insufficient to meet their needs. The scheme is admin istered on behalf of my Department by the health boards and my Department has no function in deciding entitlement in individual cases.
The purpose of rent supplements is to assist with reasonable accommodation costs of eligible persons living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source.
Rent supplements are normally calculated to ensure that the person, after the payment of rent has an income equal to the SWA basic weekly payment rate, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources.
In addition to the minimum contribution, applicants are required to contribute any assessable means which they have in excess of the appropriate SWA rate. In effect, this means that all of the difference between the relevant SWA rate and the means which a person has goes towards rent or mortgage, thereby reducing the amount of rent or mortgage interest supplement rate payable. This can act as a disincentive to lone parents and other rent supplement recipients who are offered part-time employment.
This aspect of the rent supplement scheme is being examined under Partnership 2000 in consultation with the social partners. Any proposed changes arising from this review would, of course, have budgetary implications.
