There is already a system of income maintenance supports for people living on social welfare incomes who have difficulties in meeting their housing costs. Rent and mortgage interest supplements paid as part of the supplementary welfare allowance scheme are designed for that purpose. These supplements are normally calculated to ensure that the person, after the payment of rent, has an income equal to the supplementary welfare allowance basic weekly payment rate, less £6. There is also provision in the supplementary welfare allowance scheme which allows health boards to assist people with rent deposits by way of an exceptional needs payment.
I share the Deputy's concern about escalating rents in the current housing market. There is a process in place to adjust rent supplement payment levels to take account of that. Each health board is required to set reasonable maximum rent levels in respect of various classes of persons, for example, single persons, couples, lone parents with one child, etc., as a basis for calculating the amount of rent supplement payable. The limits are set 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.
These maximum rent levels are reviewed regularly by the boards to take account of fluctuations in accommodation costs observed in each area. 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 their experience in dealing with claims for rent supplement.
Health boards must satisfy themselves that accommodation is generally available within the limits which they set. If any tenant is experiencing difficulties, the health boards have discretion to award a supplement based on the 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.
Income maintenance payments deal with the symptoms of the problem but it is also necessary to deal with the underlying imbalances in the overall housing system. As the Deputy will be aware, the Government has decided in principle to introduce a new scheme of private sector rent assistance. The new scheme will be operated by the local authorities and will help to ensure that a full range of housing options is made available to people with long-term housing needs, many of whom currently rely on supplementary welfare allowance rent supplement.
Additional informationThe Government has also taken a number of other initiatives to improve the supply of social and affordable housing in response to the current housing situation. This is the best approach to meeting the housing needs of people living on social welfare incomes.