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Rent Supplement Scheme Administration

Dáil Éireann Debate, Tuesday - 29 January 2013

Tuesday, 29 January 2013

Questions (154, 164, 167, 171)

Dessie Ellis

Question:

154. Deputy Dessie Ellis asked the Minister for Social Protection the changes she intends to make to the rent supplement scheme in view of the strain that recent changes are putting on families and persons in Dublin in particular who cannot find properties within the rent limits. [4065/13]

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Alan Farrell

Question:

164. Deputy Alan Farrell asked the Minister for Social Protection the number of persons who have left or changed rent supplemented accommodation this year due to the reduction in rent supplement allowable since January 2012; and if she will make a statement on the matter. [3924/13]

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Billy Kelleher

Question:

167. Deputy Billy Kelleher asked the Minister for Social Protection if she will outline the impact the lowering for the cap on rent allowance has had on recipients; and if she will make a statement on the matter. [4100/13]

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Catherine Murphy

Question:

171. Deputy Catherine Murphy asked the Minister for Social Protection if she will confirm that differential rent allowance limits have been permitted within local authority boundaries with respect to certain urban areas; if this is the case with Bray, County Wicklow at present compared to rates in the rest of County Wicklow; if so, if she will outline the rationale for this arrangement; if there is scope to extend this arrangement to other towns in similar circumstances to Bray; and if she will make a statement on the matter. [3910/13]

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Written answers

I propose to take Questions Nos. 154, 164, 167 and 171 together.

There are currently approximately 88,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013. Revised rent limits are in place since January 2012 and are applicable to all new rent supplement tenancies from this date and existing tenancies on review. These limits were set after an analysis of the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money was obtained whilst at the same time ensuring that people on rent supplement are not priced out of the market for good quality private rented accommodation. The central aim was to ensure availability; the limits do not provide rent supplement tenants with access to all housing in all areas.

Special provisions can be made in exceptional circumstances to exceed the rent limits including, for example, people with disabilities who require specially adapted accommodation or homeless persons. Approximately 48,700 rent supplement claims were awarded during 2012, showing that accommodation can be secured within the new limits. Information on the numbers who have secured alternative accommodation is not available. Department officials dealing with rent supplement will continue to ensure that accommodation needs for recipients can be met.

As part of the rent limit review, all major urban population centres were tested to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities. Ongoing analysis shows that for Dublin there are properties available within the maximum rent limits for rent supplement recipients. Over 32,500 persons in receipt of rent supplement reside in Dublin.

Traditionally, the Bray area was permitted the use of the County Dublin rent limits. It was noted during analysis for the June 2010 Rent Limit Review that Dublin limits for the Bray area had become a significant distorting influence for the local market. It was concluded that rents were out of line with the natural supply and demand points expected for the Bray area. Accordingly it was decided that the Bray area was to be excluded with separate limits set for this area. Officials in the Department continue to examine the impact of the rent limits on those who claim rent supplement. The next review of rent limits will take place before June 2013 and any changes to the existing limits will be considered as part of this review.

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