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Rent Supplement Scheme Administration

Dáil Éireann Debate, Thursday - 28 November 2013

Thursday, 28 November 2013

Questions (24)

Clare Daly

Question:

24. Deputy Clare Daly asked the Minister for Social Protection if her attention has been drawn to the fact that many social welfare recipients are having to subsidise their rent by paying a substantial proportion of their income to make up the difference between the rent supplement and the rent due, as a result of the gap between increasing rents in many areas and unrealistic ceilings set by her Department; and the way she proposes to deal with same. [50612/13]

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Written answers

There are currently approximately 81,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013. The purpose of rent supplement is to provide short term income assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.Revised rent limits under the rent supplement scheme have come into force with effect from 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 based on the most up-to-date data available. There have been increases in the maximum rent limits in Dublin and Galway while there have been some reductions across a number of counties, reflecting the conditions in the rental markets in those counties. The Department continues to monitor rent levels throughout the country and officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met. Rent supplement is calculated to ensure that the person, after payment of rent, has an income equal to the basic supplementary welfare allowance rate, less a specified weekly minimum contribution which recipients are required to pay from their own resources.

The “top up” payments referred to fall into two specific categories. Where a person has an additional income above the rate of supplementary welfare allowance they are, in certain circumstances, allowed to top up their rent as they will still have sufficient income to meet their basic needs after paying their rent.

The second type of top-up payment can occur where the application to the Department declares a rent lower than that actually being charged by the landlord. There has been no evidence presented to the Department showing widespread or systemic ‘false declarations’ of rent supplement through the use of illegal top-ups. The tenant, landlord or landlord’s agent must complete the rent supplement application form, which includes the amount of rent, and declare that the information provided is correct and accurate. The Department’s form clearly states that making a false statement or withholding information may lead to prosecution.

The Department, in June 2012, introduced powers of enquiry (Section 14 of the Social Welfare and Pensions Act 2012) for staff to formally request and oblige landlords to provide information in respect of rent supplement tenants, principally to verify the agreed rent and existence of the tenancy. This measure improves both the governance and oversight arrangements in place.

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