I propose to take Questions Nos. 13, 18, 23, 32, 55, 56 and 58 together.
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 new maximum rent limits were set after an analysis of the most up to date market data available; this analysis is published on the Department's website. 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 a way that could increase rent prices for others such as low paid workers and students.
Data is not available on the number of rent supplement cases that have been reviewed since the introduction of the new limits or of the outcome of these reviews. However, all new rent supplement applications are subject to these limits and 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.
The new rent limits are only in place for two months so it is too early to say what impact they have had on the rental property market.
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. Department officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met; there will no incidence of homelessness due to these changes.
Top up payments could occur where the application for rent supplement to the Department presents a lower rent than that actually being paid to the landlord. Any instance of false declarations should be reported to the relevant Department official dealing with the rent supplement case.