Rent supplement provides short-term 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. Since 2005, rent supplement expenditure has increased from €369 million to a provisional outturn of €503 million in 2011. The number of persons claiming the allowance increased from almost 60,200 persons in 2005 to over 96,800 at end 2011, a 61% increase.
The Government has effectively two initiatives to deal with long term reliance on rent supplement. The Rental Accommodation Scheme (RAS) is in operation since 2004 and the new Housing Policy Initiative as announced by our colleagues the Minister for the Environment, Community and Local Government and the Minister for Housing and Planning on 16th June 2011.
Both initiatives give the local authorities specific responsibility for meeting the long term housing needs of people receiving rent supplement. Latest figures show that over 37,700 rent supplement tenancies have now been transferred from rent supplement to RAS and other social housing options since its inception.
The new maximum rent limits were set after an analysis of 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.
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 way that could increase rent prices for others, such as low paid workers and students.
As existing claims come up for review (most claims are reviewed every six months), or when an existing lease expires, they will be reassessed using the new limits. 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. Departmental guidance to the officers administering rent supplement states that where negotiation with the landlord fails then rent supplement may continue to be paid for a period of up to thirteen weeks at the higher rate.
However, once the lease has expired, the tenant will be expected to find suitable accommodation at below the new limits in force. It is accepted that in limited circumstances rent supplement recipients may be forced to secure alternative accommodation. It should be stressed however, that these new limits will not cause or create homelessness for anyone in receipt of rent supplement.