The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source.
As the Department currently funds approximately 40% of the private rented sector it is essential that State support for rents are kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others, such as low paid workers and students.
New maximum rent limits came into force on 1 January 2012. These new limits are in line with the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.
All new rent supplement applications are subject to these limits. Existing claims will be reassessed using the new limits; most claims are reviewed every six months, or when an existing lease expires. Where a claim is under review and the rent is above the new maximum limit the customer is being asked to contact the landlord to renegotiate the rent. Where a landlord does not agree to reduce the rent to the new rates, departmental officials will discuss the options open to the tenant up to and including seeking alternative accommodation. It is accepted that in limited circumstances rent supplement recipients may be forced to secure alternative accommodation. Such applicants will be afforded reasonable time periods to secure new accommodation. Department officials administering rent supplement will continue to ensure that the rent supplement recipients' accommodation needs are met. There will be no incidence of homelessness due to these changes.
The rent limit review will have no impact on the income of a person in receipt of rent supplement. The impact of the change in the rent limits will be on the amounts received by landlords who rent to rent supplement recipients.