Rent supplement is intended as a short-term income support to eligible tenants whose means are insufficient to meet their accommodation costs. There are currently 91,600 people in receipt of rent supplement, an increase of 23% since the end of December 2008.
Rent supplements are subject to a limit on the amount of rent that an applicant may incur. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation having regard to the size of the household and market conditions. Maximum rent limits are prescribed in regulations and are time limited so that they can be adjusted in the light of rent levels generally.
Rent limits were reviewed earlier this year. In testing the level at which basic accommodation can be secured, the Department was informed by analysis of a number of data sources including data published by the CSO on trends in the private rental market. Rent limits and payments to existing rent supplement recipients were reduced to reflect the downward trends in the private rental market. The minimum weekly contribution that individuals make towards their rent under the rent supplement scheme was also increased to align more closely with the rents that local authority tenants have to pay.
The fact that there are 91,600 people receiving rent supplement indicates that the scheme is effective in meeting the needs of those who require support towards the cost of private rented accommodation. The operation of the rent supplement scheme is monitored on an ongoing basis and rent limits are reviewed in the light of trends in the private rental market. A review of rent limits includes an assessment of the impact of recent changes made to the rent supplement scheme and take account of the views of interested parties, including voluntary agencies working in the housing area. It is essential to ensure that state support for rent supplemented tenants, who form a substantial section of the rental market, does not give rise to inflated rental prices with particular negative impact on those tenants on lower incomes, including people in low paid employment.
The Department will also continue to work closely with the Department of the Environment, Heritage and Local Government to ensure that the rental accommodation scheme (RAS) meets its objective of catering for those on long term rent supplementation while enabling rent supplement to return to its original role of a short-term income support.