Dáil Éireann Debate, Tuesday - 21 October 2008
136 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs the steps she will to take by way of rent or income support in respect of families who find themselves in a negative equity and lower income situation arising from the economic downturn; and if she will make a statement on the matter. [34743/08]
View answerThe supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs.
The purpose of the rent supplement scheme is to provide short-term income support, to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. There are over 68,000 people in receipt of rent supplement of which almost 32,000 are getting a supplement for 18 months or more. Numbers on rent supplement have increased by 14% since the end of December 2007.
Similarly, mortgage interest supplement provides short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently 6,600 people in receipt of mortgage interest supplement, a 60% increase on the numbers receiving the supplement at the end of December 2007.
In recent years, a significant number of people have come to rely on rent supplement for extended periods, including people on local authority housing waiting lists. The scheme was not designed to meet long-term ongoing housing needs. One of the measures introduced to address the issue of long-term rent supplementation is the Rental Accommodation Scheme (RAS) which gives local authorities specific responsibility for meeting the long-term housing needs of people receiving rent supplement for eighteen months or more. Over 8,300 tenants have been transferred from the rent supplement scheme to RAS since 2005 and a further 7,500 rent supplement recipients were provided with social housing following their assessment for RAS.
Provision was made in 2007 to enable people on rent supplement and accepted as eligible for accommodation under RAS to return to full-time work, without losing the entire rent supplement payment.
Significant improvements to the means test for rent and mortgage interest supplement were implemented in 2007. The assessment of means for rent and mortgage interest supplement now provides for a gradual withdrawal of payment as hours of employment or earnings increase. Those availing of part-time employment and/or training opportunities can continue to receive rent or mortgage interest supplement subject to their satisfying the standard means assessment rules. Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity.
These measures are positive steps in assisting tenants in achieving a long-term housing solution for their needs while also increasing the financial return from employment for those returning to work or moving to full-time employment.
Overall, I am satisfied that the current rent and mortgage interest supplement scheme provides an adequate short-term "safety net" within the overall social welfare system to ensure that people do not suffer hardship due to loss of employment. Nonetheless I intend to keep the schemes under review to ensure that they meet the objective of catering for those who require assistance on a short-term basis while long-term housing needs are dealt with in a more appropriate manner.
