Under the supplementary welfare allowance scheme a weekly supplement may be paid in respect of rent or mort gage interest to people in receipt of social welfare or health board payments.
Entitlement to a supplement is determined by the health boards and 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.
Applicants are also required to contribute any assessable means in excess of the appropriate basic supplementary welfare allowance rate towards their rent or mortgage interest supplement.
The person concerned was awarded a retirement pension of £89 per week, an increase of £15.50 on his previous pre-retirement allowance. His rent also increased by £0.50 per week at this time. The amount of rent supplement payable was accordingly reduced by £15, the net increase in his means from £23.30 to £8.30.
In May 2000 the person concerned received a budget increase of £7 in his weekly pension. As the increase was £3 greater than the corresponding increase in the basic rate of SWA this resulted in a further reduction of this amount in the rent supplement bringing it to the current rate of £5.30.
This manner of calculation of rent supplement will be examined as part of the review of the SWA scheme which is currently being undertaken as part of my Department's series of formal programme evaluations. A working group comprising officials from my Department and other relevant agencies has been established to carry out the review and a report is expected by the end of next year.
Any proposals for changes in this area would also have to be considered in a budgetary context.