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Rent Supplement Scheme Expenditure

Dáil Éireann Debate, Thursday - 17 October 2013

Thursday, 17 October 2013

Questions (103, 106)

Bernard Durkan

Question:

103. Deputy Bernard J. Durkan asked the Minister for Social Protection the total annual costs of rent support in each of the past three years to date; the extent to which she has examined the possibility of replacing such a process with permanent housing of a traditional nature; and if she will make a statement on the matter. [43893/13]

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Bernard Durkan

Question:

106. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which her Department has monitored sharp increases in rent, which are affecting those on rent support; if she has in mind any provision to address the issue in view of the fact that many persons on rent support are being forced to vacate their accommodation; and if she will make a statement on the matter. [43896/13]

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Written answers

I propose to take Questions Nos. 103 and 106 together.

The purpose of the rent supplement scheme is to provide short-term 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 82,000 rent supplement recipients of whom over 51,000 are in receipt for over 18 months. The Government has provided over €403 million for the scheme in 2013. Expenditure on rent supplement for the last 3 years is provided in the following tabular statement.

New revised rent limits came into force on 17 June 2013. The new rent limits were determined following an extensive review of the private rental market which showed rising rents for urban centres, particularly Dublin and Galway, and reduction in rents for the majority of counties. The new limits continue to ensure that value for money is achieved while, at the same time, people on rent supplement are not priced out of the market for private rented accommodation. The Department currently funds approximately 30% of the total supply of private rented sector properties so it is essential that the rent limits are kept under review and do not distort the natural supply and demand conditions that prevail. Officials in the Department continue to examine the impact of the new rent limits on those who claim rent supplement and ensure that their accommodation needs are met.

The Department's strategic policy direction is to return rent supplement to its original purpose of a short term income support. In July 2013 the Government approved the introduction of the Housing Assistance Payment (HAP). Under HAP, responsibility for recipients of rent supplement with a long-term housing need will transfer from the Department of Social Protection to local authorities. Officials in the Department of Social protection are working with those in the Department of Environment, Community and Local Government, who are leading the project, in developing proposals to give effect to this transfer. Under HAP, customers with assessments of a long term housing need who would otherwise receive rent supplement will be taken directly into HAP.

This summer, DECLG undertook a Business Processing Design exercise to determine the business processes required to support the implementation of HAP roll out. This exercise will assist DECLG in the drafting of the necessary legislation and feed into the development of implementation plans and the necessary IT infrastructure to support the roll-out of the new scheme in selected test authorities. The Department is advised that following the enactment of the relevant legislation, a HAP testing phase will be carried out in the selected local authorities in 2014 with full roll out of the scheme to follow once the test phase is complete.

Rent Supplement Expenditure: 2010 to 2012

Year

Cost €000

2010

516,500

2011

502,700

2012

422,500

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