Rental Accommodation Scheme Payments

Dáil Éireann Debate, Wednesday - 12 June 2013

Wednesday, 12 June 2013

Questions (129)

Mattie McGrath

Question:

129. Deputy Mattie McGrath asked the Minister for Social Protection if her attention has been drawn to the fact that her decision to cut rent allowance rates throughout the country will directly result in homelessness, especially for single persons and couples with one child; the basis on which her decision was made to cut the rate in south Tipperary, where a very strong private rental market exists and where it is simply not possible for those listed above to find suitable accommodation at the newly reduced rates; if her Department discussed the new rates with local rent officers who are experiencing first-hand the difficulties in trying to implement such rates; how she expects a single person in south Tipperary to source accommodation with €12 per week less; if she will reverse this decision and carry out a real review of how lower rates will directly lead to homelessness; and if she will make a statement on the matter. [28353/13]

Written answers

Minister for Social Protection

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. There are approximately 86,000 recipients of rent supplement for which the Government has provided over €403 million in 2013.

I recently announced my intention to implement revised rent limits under the rent supplement scheme which will come into force on Monday 17 June 2013 and will be in place until 31 December 2014.

The new rent limits have been determined following an extensive review of the private rental market. This review has been based on the most up-to-date market data available. This review continues the previous rent limit reviews’ emphasis, to ensure that value for money is achieved while at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation. The Department currently funds approximately 30% of the private rented sector so it is essential that the rent limits are kept under review.

The Department has completed a full review of rental costs throughout the country using data received from the Private Residential Tenancies Board (PRTB) of actual rental tenancies registered with them, including that in South Tipperary. The Department also used publicly available data sources including the Central Statistics Office rental indices, the Daft.ie Rental Report and leading websites advertising rental properties to ascertain both the market trends and the current asking prices for rental of one, two and three-bedroom properties.

The Department engaged with a number of stakeholders as part of the review process, including staff with responsibility for the administration of the rent supplement scheme.

In relation to the new maximum rent limits for South Tipperary I regret there was an error in the rates quoted in the list circulated to Oireachtas members. The correct limits for South Tipperary are set out in the attached table. There is no change to the single rate.

Department officials administering the scheme will continue to ensure that the accommodation needs of rent supplement recipients are met. The necessary regulations to give effect to the revised limits will be finalised within the coming week, and the full report of the Rent Limit Review will be published at that time.

South Tipperary Maximum Rent Limits from 17 June 2013

County:	Single Shared	Couple Shared	Single	Couple	Couple/One Parent Family - 1 Child	Couple/One Parent Family - 2 Children	Couple/One Parent Family - 3 Children
South Tipperary	€195	€220	€370	€400	€485	€500	€525