Dáil Éireann debate -
Thursday, 18 Nov 1999

Vol. 511 No. 2

Adjournment Debate. - Rent Subsidy Scheme.

Mr. Wall

I thank you, a Cheann Comhairle, and the Minister for taking this important matter on the Adjournment. The core problem that has been created in regard to the rent subsidy scheme is the huge demand for rented accommodation throughout the country, especially in the greater Dublin catchment area. This demand has resulted in the cost of accommodation rising dramatically, thus creating a situation where the guidelines and limits operated by the health boards match the bottom of the scale for accommodation standards only. This accommodation, some of which has been brought to my attention, is unacceptable for families to move into and does not lend itself to creating an atmosphere for family life. I could give many examples of such accommodation but there is no need as most public representatives are well aware of what I speak about. I have no doubt they have made representations to the relevant health boards in regard to same.

Will the Minister increase funding to health boards to allow them readjust the guidelines and limits. It is imperative that local authorities and health boards co-operate to ensure that rented accommodation meets the statutory laws laid down in relation to same.

We cannot allow single parents, single persons or married couples and their families to be housed in such substandard houses or apartments. All these unfortunate families are in receipt of social welfare payments and if the present trend is allowed to continue it will be evident to these families that we are not a caring society. We must ensure they have decent accommodation. This is possible if the combined efforts of the local authorities and the health boards tackle the problem. Both should examine the accommodation before the applicant takes possession and should it be necessary to carry out repairs, the owners of the property should be informed. Electrical problems, where they exist, should be addressed immediately as they are obvious fire hazards. Bathing facilities should also be provided.

This problem has to be addressed in the short term. We cannot continue in this time of full and plenty to permit families to live in squalor. We must use all our legislation and officials to rectify this problem. Given that the solution is within the remit of the Minister's Department I ask that he address same as a matter of urgency.

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I thank the Deputy for raising this issue. 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 administered 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. Each health board is required to set reasonable maximum rent levels for various household types as a basis for calculating the maximum amount of rent supplement payable in each area under the supplementary welfare allowance scheme. The limits are set by the health board using local knowledge as to what constitutes a reasonable rent for private rented accommodation for various household types within and across the health board area.

The average weekly rent supplement payment differs in each health board as the rents charged for accommodation vary across each health board, reflecting market forces and local conditions. For example, the limits set in all health board areas take into account information received from local auctioneers and letting agents regarding average rents charged in the area.

These maximum rent levels are reviewed regularly by the boards to take account of the annual fluctuations in accommodation costs observed in each area. Health boards must satisfy themselves that accommodation is generally available within the limits which they set. When accommodation is no longer available within these limits, rent levels are reviewed and revised upwards, at the initiative of the health boards, in the light of the experience in dealing with claims for rent supplement. My Department has no role in that aspect.

The current rent levels for the Eastern Health Board area, which includes County Kildare, have applied with effect from 1 January 1999 and are shown in the following tabular statement. The Eastern Health Board has recently reviewed its rent levels and proposes to increase the levels with effect from 1 January 2000.

If any tenant is experiencing difficulties, the health board has discretion to award a supplement based on an amount of rent which exceeds the maximum level set where there are extenuating medical or social circumstances having regard to the applicant's means and all the other requirements of the legislation. The report of an interdepartmental committee on housing was published in August 1999 and the Government has decided in principle to implement its main recommendations.

The report recommends that a new rent assistance scheme be put in place, operated by the local authorities, to serve people who have 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 through the social welfare system.

The Government has asked 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 timeframe is envisaged for introducing the new arrangements once the detailed proposals have been agreed. This will deliver an important element of the Government's programme, An Action Programme for the Millennium, which commits the Government to the maximum co-ordination of housing policy under one Department.

Current Maximum Rent Levels in the Eastern Health Board.

Family Size	Maximum Level1 January 1999
Single Person	£60 per week
Couples with no dependants	£96 per week
Couples with Lone Parents with one dependant	£110 per week
Couples and Lone Parents with two or more dependants	£650 per month
Single Persons and Couples in Shared Accommodation	£48 per week
Families in Shared Accommodation	£650 per month