Bernard Allen
Question:862 Mr. Allen asked the Minister for Social and Family Affairs the reason a person (details supplied) in County Cork had their rent allowance reduced from €137.50 to €11.50. [11388/04]
View answerTuesday, 27 April 2004
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Written answers
People on community employment schemes may retain a portion of their rent supplement for up to four years subject to a gross household income limit of €317.43 per week. The supplement may be retained at 75% in year one, 50% in year two and 25% in years three and four.
A participant in community employment may opt to be assessed in accordance with that tapered withdrawal system or standard supplementary welfare allowance rules. The will be entitled to whichever option is more beneficial.
The Southern Health Board has advised that following her commencement on the community employment scheme the level of the person's household income exceeded the €317.43 limit applicable to the tapered withdrawal system. Her rent supplement was calculated in accordance with standard supplementary welfare allowance rules. Rent supplements are subject to a means test. They are normally calculated to ensure that a person, after rent is paid, has an income equal to the rate of supplementary welfare allowance appropriate to his or her family circumstances, less a minimum contribution, currently €13, that recipients are required to pay from their resources.
In addition, recipients are also required to contribute, towards their rent, any additional assessable means over and above the appropriate basic supplementary welfare allowance rate. Up to €50 per week of income from part-time employment may be disregarded in this means test.
Under standard rules the amount of rent supplement payable in this case was calculated at €11.50 per week. She appealed the decision. In the course of the appeal it came to light that in addition to her one-parent family payment and community employment wages she was also in receipt of previously undeclared maintenance payments of €50 per week.
When the amount of rent supplement payable is reviewed to take account of the maintenance payments the person concerned is deemed to have sufficient means to cater for her rent costs. Therefore, there will be no further entitlement to a rent supplement.
As an exceptional measure the appeals officer decided that a payment of rent supplement at €11.50 per week should continue until 1 May.