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Rent Supplement Scheme Expenditure

Dáil Éireann Debate, Wednesday - 29 May 2013

Wednesday, 29 May 2013

Questions (12, 57)

Thomas P. Broughan

Question:

12. Deputy Thomas P. Broughan asked the Minister for Social Protection if she will report on her Department's spending in 2012 and to date in 2013 on rent supplement; the number of persons currently in receipt of the payment; and her views on the effect of rent supplement levels on rent rates, particularly in the greater Dublin area. [25705/13]

View answer

Clare Daly

Question:

57. Deputy Clare Daly asked the Minister for Social Protection if she will review the cap on rents, which is penalising those on social welfare, against the backdrop of rising rents. [25639/13]

View answer

Written answers

I propose to take Questions Nos. 12 and 57 together. There are currently approximately 86,000 recipients of rent supplement for which the Government has provided over €403 million for 2013 and €423 million in 2012. Expenditure on the scheme up to end April 2013 is approximately €127 million. The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation and not to act as an alternative to the other social housing schemes operated by the Exchequer. As the Department currently funds almost 30% of the private rented sector it is essential that State support for rents are continually kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others such as low-income workers and students.

Analysis of recent reports has shown that rents have increased in some urban areas, including Dublin, with rental asking rates falling in other cities and rural areas. Revised rent limits were due to be in place from July of this year. However, I am pleased to say the review is almost finalised, with new rent limits expected to be in place in early June. The emphasis of the review is to ensure that value for money is achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation. All major urban population centres are being examined to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities.

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