Dáil Éireann Debate, Wednesday - 11 February 2004
125 Mr. Howlin asked the Minister for Social and Family Affairs if her attention has been drawn to the comments by the chairperson of Threshold that the Government decision to cap rent supplements has led to hidden poverty and that many tenants have been forced to top up officially declared rents that leaves them short of heat, clothing and food; and if she will make a statement on the matter. [3872/04]
View answerThe supplementary welfare allowance scheme which is administered on behalf of my department by the health boards provides for the payment of a weekly or monthly supplement in respect of rent to any person in the State whose means are insufficient to meet his or her needs.
Up to November 2002, the maximum level of rent which a person could incur and still be eligible to receive rent supplement, was determined by each health board and was set by reference to local considerations. On 22 November 2002, I introduced regulations which maintained, up to 31 December 2003, the maximum amounts of rent at the same levels as those set by the health boards.
Following a review by my Department, I introduced regulations last December which provided for adjustments in certain rent levels and maintained others at their existing level for the period to 30 June 2005. The review of rent levels included an analysis of rental data, the views of each health board on rent levels in their areas as well as consultations with Threshold and Centre Care. Both Threshold and Centre Care expressed the view that rent levels in Dublin were generally satisfactory but advised that the level for single persons was too low and that it should be increased. This level was subsequently increased by 7.5%.
My Department has not been offered evidence of collusion between tenants and landlords regarding rent levels. It is not in a tenant's interests to enter into such collusion and anybody aware that this is happening should bring the matter to the attention of the appropriate health board. A health board has the discretion to pay a rent supplement above the maximum level in exceptional circumstances where the board is satisfied that the circumstances of the case so warrant. Setting maximum rent limits higher than are justified by the open market distorts the rental market and leads to a general rise in rent levels that disadvantages people on low incomes.
I am satisfied that, rather than having an adverse impact on social welfare recipients in the private rented sector, the setting of maximum levels has improved their position in acquiring accommodation. Tenants are no doubt aware that rent levels have been falling for some time and that the choice of properties is increasing. Recent media reports indicate that economic commentators are predicting further falls in rent levels this year. The consistent decrease in rent levels and the predictions of further decreases indicate that my decision to cap maximum rent levels was entirely correct. I will, of course, keep this matter under review to ensure that the long-term interests of tenants are protected.
