Rent Supplement Scheme Payments

Dáil Éireann Debate, Thursday - 10 April 2014

Thursday, 10 April 2014

Questions (85, 98)

Jonathan O'Brien

Question:

85. Deputy Jonathan O'Brien asked the Minister for Social Protection her plans to revise upwards the maximum rent limits applicable to rent supplement in County Cork. [17075/14]

Bernard Durkan

Question:

98. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which an increase in maximum allowable rent support will be made to facilitate those currently on local authority housing lists who are not able to meet current rent level requirements; and if she will make a statement on the matter. [17205/14]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 85 and 98 together.

The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. There are currently approximately 78,000 rent supplement recipients for which the Government has provided over €344 million for 2014. Following an extensive review of the private rental market revised maximum rent limits were introduced from Monday 17 June 2013 until 31 December 2014. Despite the overall pressures on the social protection budget, there have been increases in the rent limits in Dublin, Galway, North Kildare and Bray areas including some increases in Cork. The fact that approximately 78,000 people are currently in receipt of rent supplement shows that a significant number of landlords are accommodating applicants on the scheme.

The latest Daft.ie rental report indicates that the number of advertised rental units in Dublin has declined from 6,700 in 2009 to under 1,500 at the end of 2013. This report also states that rent levels are static in areas outside Dublin, including Cork, Galway and Limerick cities. Analysis shows that properties are available in County Cork within the current maximum rent limits. In the Dublin area in particular, prospective tenants, including those seeking to access rent supplement, are now finding it increasingly difficult to secure appropriate accommodation due to the reduced availability of rental properties. Increasing the maximum rent limits for rent supplement will not resolve this difficulty, due to the reduced level of supply, and would result in further increases in rental costs for all persons renting including those on reduced incomes and students. I have no plans to revise the existing rent limits at this time.

Department officials administering rent supplement have considerable experience in dealing with customers of the scheme and will continue to make every effort to ensure that their accommodation needs are met and that the residence is reasonably suited to their residential and other needs. The Department continues to monitor trends in the private rental market to determine the impact on rent supplement recipients and is working closely with Dublin City Council and Threshold to ensure that the necessary arrangements can be put in place in respect of vulnerable families in receipt of rent supplement.

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 are working closely with those in the lead Department of Environment, Community and Local Government, in piloting HAP in Limerick City and County Council with further roll out to selected local authorities during the year.

Question No. 86 withdrawn.