The purpose of the rent supplement scheme is to provide short-term income 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 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 88,000 persons in receipt of rent supplement for which the Government has provided a sum of €403 million for 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 private rented accommodation. Approximately 48,700 rent supplement claims were awarded during 2012, showing that accommodation can be secured within the new limits.
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. On-going analysis shows that for the eastern counties of Dublin, Meath, Kildare and Wicklow there are properties available within the maximum rent limits for rent supplement recipients. Over 41,500 persons in receipt of rent supplement, representing almost half of the customer base, reside in these counties. Officials in the Department continue to examine the impact of the rent limits on those who claim rent supplement and continue to ensure that accommodation needs for recipients can be met. 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.
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). The Department has been advised that pilot testing of HAP will commence in selected counties during the second half of 2013 and a general roll out of HAP from early January 2014. This initiative, along with the on-going rental accommodation scheme, should reduce the numbers of persons who are in receipt of long term rent supplement as they are transferred to local authority housing sponsored solutions.
