Written Answers. - Departmental Correspondence.
Willie Penrose
Question:
515
Mr. Penrose
asked the
Minister for Social and Family Affairs
if she will give detailed consideration to correspondence (details supplied) and in particular the anomalies raised therein as a result of the recent decision to cap rent allowances; if she will take steps to deal with same; and if she will make a statement on the matter.
[3476/03]
Two matters are raised in the correspondence in question. The first concerns the fact that, in general, rent supplement is not payable under the supplementary welfare allowance scheme in cases where the rent incurred is over the maximum allowed by the health board. The requirement for individuals to find accommodation appropriate to their circumstances within the rent limits set by the health board is a standard requirement which has not been changed. The level of rent a person may incur and the amount of supplement payable under the supplementary welfare allowance scheme towards that rent have always been subject to such limits.
The maximum level of rent, which a person may incur is determined by each health board in respect of its functional area and is set by reference to local property considerations. The decision to continue the existing maximum rent levels until 31 December 2003 was made on the basis of current conditions in the property market. My Department is not aware of any case where the application of a rent cap has resulted in individuals being made homeless.
The second matter raised concerns the fact that, in general, a reduced rate of rent supplement is payable in cases where a person has income over and above the basic rate of sup plementary welfare allowance appropriate to their circumstances. Rent supplements are subject to a means test and are normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance appropriate to his-her family circumstances, less a minimum contribution of €12 which recipients are required to pay from their own resources. Many recipients pay more than €12 because they are required to contribute towards their rent any additional assessable means over and above the appropriate supplementary welfare allowance rate.
Special arrangements are in place to encourage people to take up open-market employment or community employment places, under which they can retain some or all of the additional income that they earn. The position in relation to rent supplement for people who take up places on approved schemes, such as community employment, is that they may retain part of their rent supplement, subject to a gross household income limit of €317.43 per week and certain other conditions. The supplement may be retained on a tapered basis over a four year period. The amount of rent supplement payable is based on the amount of supplement in payment prior to commencing on the scheme. Some 75% is retained in year one, 50% in year two and 25% in years three and four.
All participants on community employment schemes are entitled to either the gradually reducing amount that can be retained under the transitional arrangements described above or the amount that is normally paid under the standard rules of supplementary welfare allowance, whichever is the greater.
The standard assessment provides for an income disregard of up to €50 per week in respect of part-time earnings. Therefore, anyone participating in a community employment scheme and who qualifies for a rent supplement would benefit by at least €50 per week.
The issue of child care costs arises mainly in the context of people taking up employment. However, while arrangements are in place, as described above, to ensure that people taking up employment are better off working, the legislation governing the payment of rent supplement does not provide for the disregard of child care costs in the means test.
