Rent Supplement Scheme

Dáil Éireann Debate, Tuesday - 12 June 2012

Tuesday, 12 June 2012

Questions (273, 274)

Bernard J. Durkan

Question:

369 Deputy Bernard J. Durkan asked the Minister for Social Protection if she will review the criteria for determination of entitlement to rent allowance with particular reference to the need to take into account variations in rent costs driven by local market factors which in may cases disqualify applicants from any entitlement and who are consequently forced to live in unsound or unsuitable conditions which in some cases are in breach of good practice in the absence of adequate local authority housing; and if she will make a statement on the matter. [28345/12]

Written answers

Minister for Social Protection (Deputy Joan Burton)

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. 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 currently approximately 93,800 persons in receipt of rent supplement, for which the Government has provided €436m in 2012.

New maximum rent limits were introduced from 1 January 2012 following analysis of the most up-to-date market data available. The emphasis of the 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. The rent levels are being monitored by Department officials and at this point there are no plans to revise the existing limits. Responsibility for setting and enforcing housing standards rests with the Local Authorities. However, accommodation occupied by rent supplement tenants should at least meet minimum housing standards. In consultation with the Department of Environment, Community and Local Government, S.I. No. 572 of 2006 and Section 25 of the Social Welfare and Pensions Act 2007 introduced the condition that allows the Department's officer administering supplementary welfare allowance to decide that a rent supplement may not be payable where it has been notified by a housing authority of the non-compliance with standards.

Where such a notification is received from a housing authority in respect of an existing tenant it is recommended that the designated officer would discuss the situation with the tenant and take whatever action it decides is necessary in the best interests of the tenant. This condition for rent supplement supports the Department of Environment, Community and Local Government in their aim to promote further improvement in private rented accommodation standards.

Bernard J. Durkan

Question:

370 Deputy Bernard J. Durkan asked the Minister for Social Protection if having regard to the views expressed by some of her predecessors to the effect that rent supplement would in the future feature as a replacement for local authority housing, the way it is contended that the housing needs of eligible applicants are likely to be met in the future in view of the need for budgetary cutbacks which she inherited from her predecessors; and if she will make a statement on the matter. [28346/12]

Minister for Social Protection (Deputy Joan Burton)

On 16th June 2011, the Minister for the Environment, Community and Local Government and the Minister for Housing and Planning published a new housing policy framework statement. This framework statement reflects the content of the Programme for Government and sets out the principles to underpin the development of housing policy into the medium term. The framework statement specifically contains the announcement for the transfer of responsibility for providing housing needs for long term rent supplement recipients to housing authorities on a phased basis. The focus of this approach is to achieve a key Government commitment to remove barriers to employment, and at the same time, returning rent supplement to its original purpose of a short-term income support. There are currently approximately 93,800 persons in receipt of rent supplement, for which the Government has provided €436 million for 2012.

A multi-agency steering group has been established by the Department of Environment, Community and Local Government to give effect to this initiative and this group is currently developing proposals and operational protocols for the transfer of responsibility from the Department of Social Protection to housing authorities of persons who have long term housing requirements. A commencement date for the new arrangements of 1 January 2013 has been approved by Government, subject to further consideration of the matter by it. Such consideration will include a detailed economic assessment of the proposal, the possibility of centralised management and reporting arrangements, any required amendments to Housing and Social Welfare legislation and consistency with overall expenditure ceilings for 2013 and 2014 set out in the Comprehensive Review of Expenditure Report. The consideration of an Exchequer neutral mechanism for funding and resourcing the proposed measure having regard to medium term expenditure targets will be examined.