Social Welfare Code

Dáil Éireann Debate, Wednesday - 18 April 2012

Wednesday, 18 April 2012

Questions (516, 517, 518)

Gerry Adams

Question:

524 Deputy Gerry Adams asked the Minister for Social Protection if she will consider a review of the revised rent limits for rent supplement in County Louth, including the east Meath part of the constituency, as these new ceilings are causing undue pressure on persons in receipt of rent supplement, in many cases the landlords will confirm a reduction in writing, yet in reality the tenant is being forced to pay the shortfall; her views that such circumstances do not adhere with guidelines to ensure the need of the tenant is of paramount importance and that their income stays within certain guidelines; and if she will make a statement on the matter. [18030/12]

Gerry Adams

Question:

525 Deputy Gerry Adams asked the Minister for Social Protection if she has evidence that the revised rent limits for rent supplement in County Louth, including the east Meath part of the constituency have had the desired effect in effectively bringing rents down; if she has consulted with any landlords while conducting the review as many landlords are coming under pressure from their banks with stressed mortgages and are not in a position to reduce rents; and if she will make a statement on the matter. [18031/12]

Written answers

Minister for Social Protection (Deputy Joan Burton)

I propose to take Questions Nos. 524 and 525 together.

The purpose of rent supplement is to provide short-term income support to eligible tenants 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. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.

The current maximum rent limits were set after an analysis of the most up to date market data available but did not include consultation with landlords. 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 good quality 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.

The next national review of maximum rent limits is due to be completed before June 2013. The Department will continue to monitor rent levels throughout the country but at this point I have no plans to revise any of the existing rent limits.

Rent supplement is calculated to ensure that the person, after payment of rent, has an income equal to the basic supplementary welfare allowance rate, less a specified weekly minimum contribution which recipients are required to pay from their own resources. The type of shortfall payments to which the Deputy refers are known as "top up" payments and fall into two specific categories.

Where a person has an additional income above the rate of supplementary welfare allowance they are, in certain circumstances, allowed to top up their rent as they will still have sufficient income to meet their basic needs after paying their rent. The second type of top up payment can occur where the application to the Department declares a rent lower than that actually being charged by the landlord. Any instance of false declarations should be reported to the relevant Departmental representative who has specific legislative powers to deal with such matters.

Gerry Adams

Question:

526 Deputy Gerry Adams asked the Minister for Social Protection if her attention had been drawn to constituents being contacted by her Department advising that tenants must leave their homes should negotiations in rent reduction fail; if she will outline the measures that are in place for those with specific housing needs, who have signed a lease prior to revised limits, who cannot negotiate reductions nor find alternative suitable accommodations within the ceiling limit; and if she will make a statement on the matter. [18033/12]

Minister for Social Protection (Deputy Joan Burton)

The purpose of the rent supplement scheme is to provide 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. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are approximately 95,000 rent supplement recipients with a forecast outturn of €437 million provided for 2012. Approximately 54,000 of these are now in receipt of rent supplement for more than eighteen months.

The Department currently funds approximately 40% of the private rented sector so 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.

The 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. As existing claims come up for review, most claims are reviewed every six months, or when an existing lease expires, individuals will be reassessed using the new limits.

In all cases under review whereby the rent is above the new maximum limit the individual concerned 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 having regard to any existing lease arrangements. There will be no case of homelessness from this measure and Department officials are dealing with each case based on the individual circumstances of the rent supplement tenancy.