Dáil Éireann Debate, Thursday - 18 October 2012
159. Deputy Willie O'Dea asked the Minister for Social Protection the reason the rates of rent supplement differ significantly between the areas of North Tipperary and South Tipperary and his plans to change this situation. [45425/12]
View answerThe 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 90,000 persons in receipt of rent supplement for which the Government has provided €436 million in 2012.
The State plays a major role in the private rental market through the rent supplement scheme. As the Department currently funds approximately 30% of the private rented sector it is essential that State support for rents are kept under review and reflect current market conditions. Revised maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These limits were set after an analysis of the most up to date market data available. Any price differential between North and South Tipperary was based on the analysis of their respective local rental markets. 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.
Analysis of the rental market shows that for both North Tipperary and South Tipperary there are properties available for rent supplement recipients. The Department will continue to monitor rent levels throughout the country but at this point I have no immediate plans to revise the existing rent limits. The next review of rent limits will take place before June 2013 and any changes to the limits in Tipperary will be considered as part of this review.
