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Rent Supplement Scheme Administration

Dáil Éireann Debate, Tuesday - 15 April 2014

Tuesday, 15 April 2014

Questions (341, 355)

Finian McGrath

Question:

341. Deputy Finian McGrath asked the Minister for Social Protection the position regarding a rent supplement allowance in respect of a person (details supplied) in County Meath; and if she will make a statement on the matter. [17595/14]

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Thomas P. Broughan

Question:

355. Deputy Thomas P. Broughan asked the Minister for Social Protection if her attention has been drawn to the reality that some persons in receipt of rent supplement from her Department are required to pay top-ups of rent to landlords over and above the rent caps agreed for the areas in which they are living in order for them to continue to secure their tenancy. [17758/14]

View answer

Written answers

I propose to take Questions Nos. 341 and 355 together.

There are currently approximately 78,000 rent supplement recipients for which the Government has provided over €344 million for 2014.

The person referred to by the Deputy is not in receipt of rent supplement from the Department.

The maximum rent limits under the rent supplement scheme are comprehensively reviewed every 18 months which ensures that State support for rents is kept under review in line with market conditions. The Department completed a review of the maximum rent limits for rent supplement and revised rent limits came into effect from mid-June June 2013 which will remain in place until 31 December 2014. The emphasis of the review is to ensure availability of accommodation for rent supplement tenancies and not to provide access to all housing in all areas while ensuring maximum value for money is achieved. 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.

I am aware of the current difficulties facing people in sourcing accommodation, particularly in Dublin, 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 or abolish the maximum rent limits at this time.

The Dublin local authorities are currently engaging with the Department in developing an inter-agency intervention system to identify vulnerable families who are currently in receipt of rent supplement and at risk of becoming homeless due to the imminent loss of their tenancy. These cases will be assessed on an individual basis having regard to the individual circumstances of the families involved.

A top up payment referred to by the Deputy can occur where the applicant declares a rent lower than that actually being charged by the landlord. There has been no evidence presented to the Department showing widespread practice of illegal top ups. Such cases should be reported to the Department which has specific legislative powers to deal with such offences.

To facilitate such a “top up” arrangement, the tenant, landlord or landlord’s agent must complete the rent supplement application and jointly declare that the information provided is correct and accurate. The application form clearly states that making a false statement or withholding information may lead to prosecution. The Department, in June 2012, introduced powers of enquiry for staff to formally request and oblige landlords to provide information in respect of rent supplement tenants to further improve the governance arrangements.

I want to assure the Deputies, that 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.

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