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Rent Supplement Scheme Payments

Dáil Éireann Debate, Tuesday - 13 November 2012

Tuesday, 13 November 2012

Questions (406)

Bernard Durkan

Question:

406. Deputy Bernard J. Durkan asked the Minister for Social Protection the basis on which maximum rent support levels are being determined in respect of persons eligible for such support in lieu of local authority housing; the factors taken into account in determining the upper cost of rental accommodation throughout the regions; the way variations at such levels are determined; and if she will make a statement on the matter. [50134/12]

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Written answers

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 89,000 persons in receipt of rent supplement for which the Government has provided €436 million in 2012.

New maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These new limits were set after an analysis of the most up to date market data available. For all counties, major urban population centres were tested as part of the rents review to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities. The focus of the review was primarily based on ensuring an adequate level of housing stock is available, using the 40th percentile as the basis for establishing rent limits.

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.

The full report of the review of maximum rent limits is available on the Department’s website at http://www.welfare.ie/EN/Policy/ResearchSurveysAndStatistics/Pages/rentreview2011.aspx

Officials in the Department continue to monitor the impact of the rent limits on those who claim rent supplement.

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