Brian Stanley
Question:132. Deputy Brian Stanley asked the Minister for Social Protection if consideration has been given to making payment of rent supplement directly to landlords through their bank accounts. [4069/13]
View answerTuesday, 29 January 2013
Questions (132, 169)
Seán Fleming
Question:169. Deputy Sean Fleming asked the Minister for Social Protection the progress that has been in the transfer of responsibilities for the provision of rent allowance and the timeframe for future changes. [4097/13]
View answerWritten answers
I propose to take Questions Nos. 132 and 169 together.
There are currently approximately 88,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013. Under the legislative provisions governing rent supplement, the Department’s relationship is with the tenant. Rent supplement is specifically for the benefit of tenants to assist them with their accommodation needs and there is no direct relationship between the landlord and the Department. However, rent supplement payments can, at the request of the tenant and agreement of the Department, be paid directly to the landlord. The efficiency of the scheme would be significantly affected if all rent supplement payments were made directly to the landlord as the Department would potentially have to create a formal relationship with up to 88,000 additional clients, the landlords, for what should be only a short term need.
On 27 March 2012, the Government approved, in principle, to transfer responsibility for the provision of rental assistance to persons with a long-term housing need from this Department to housing authorities using a new Housing Assistance Payment (HAP). Among the main features of HAP is that landlords will be paid directly by the local authority. The Department has recently introduced legislation to amend the household budget scheme which will support tenants in meeting their rental obligations to local authorities. This amendment is a key stepping stone towards the transfer of responsibility for providing for the housing needs of long-term recipients of rent supplement to the housing authorities. The Department of the Environment, Community and Local Government has advised that it expects pilot testing of HAP to commence during the second half of 2013 and a general commencement of transfers will take place from January 2014. The new arrangements will achieve a key Government commitment of removing barriers to employment and at the same time returning rent supplement to its original purpose of a short-term income support.