Dáil Éireann Debate, Wednesday - 17 September 2014
48. Deputy Ruth Coppinger asked the Tánaiste and Minister for Social Protection the aggregate annual costs and cost per household from 2008 to 2013 to the Exchequer of the various rent allowance and rent supplement schemes. [33043/14]
View answer150. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Social Protection the total expenditure by her Department on rent supplement and mortgage supplement, respectively, in each year since 2010, including 2014 to the end of August; the reasons for the change in the amounts paid; and if she will make a statement on the matter. [34507/14]
View answer157. Deputy Lucinda Creighton asked the Tánaiste and Minister for Social Protection if she will provide in tabular form the number of recipients of rent supplement in the Dublin city area for the years 2010, 2011, 2012, 2013 and to date in 2014; the absolute amount of rent supplement paid by her Department in each of these periods; and if she will make a statement on the matter. [34692/14]
View answerI propose to take Questions Nos. 48, 150 and 157 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. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 73,800 rent supplement recipients for which the Government has provided over €344 million for 2014.
Expenditure on rent supplement has decreased from a maximum spend of over €516 million in respect of over 97,000 recipients in 2010 to some €373 million in respect of almost 80,000 recipients in 2013. Changes in expenditure are attributable to variations in recipient numbers experienced during the economic crisis, the transfer of recipients to social housing, changes in rent levels and increases to the minimum contribution payable by rent supplement tenants.
The original purpose of the mortgage interest supplement scheme was to provide short-term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently approximately 7,000 people in receipt of mortgage interest supplement for which the Government has provided €17.9 million in 2014.
Similar to the rent supplement scheme, both expenditure and recipients of the mortgage interest supplement scheme reached a peak during the period of economic crisis, of almost €68 million in respect of over 19,000 customers in December 2011. Changes in expenditure can be attributed to variations in recipient numbers, interest rates and changes to the minimum contribution payable by mortgage interest supplement tenants.
Budget 2014 made provision for the discontinuation of entitlement to mortgage interest supplement for all new applicants from 1 January 2014. This has ensured that persons with long term difficulties with their mortgage are continuing to engage with their mortgage service provider through the Mortgage Arrears Resolution Process (MARP). Customers in receipt before the 1 January 2014 were not affected by this measure and can retain entitlement to the scheme over a four year period, up to 1st January 2018. This measure will allow for a natural winding down of the mortgage interest supplement scheme over this four year period through the provision of sustainable repayment arrangements and engagement in employment.
The annual expenditure on the rent supplement and mortgage interest supplement schemes, including that to August 2014, is provided in the attached tabular statements. Rent supplement recipients statistics at end of year are maintained at county level and the detail in respect of Dublin county is also provided. The cost of the rent supplement per household is not available.
Tabular Statements
Table 1
Rent Supplement: End of Year Recipient Numbers & Expenditure: 2008 to Date
|
Year |
Recipients |
Cost €000 |
|
2008 |
74,038 |
440,548 |
|
2009 |
93,030 |
510,751 |
|
2010 |
97,260 |
516,538 |
|
2011 |
96,803 |
502,747 |
|
2012 |
87,684 |
422,536 |
|
2013 |
79,788 |
372,909 |
|
End August 2014 |
74,080 |
229,000 |
Table 2: Rent Supplement: End of Year Recipient Numbers in Dublin 2010 to Date
|
Year |
Recipients |
|
2010 |
33,818 |
|
2011 |
34,423 |
|
2012 |
32,584 |
|
2013 |
29,541 |
|
End August 2014 |
27,601 |
Table 3: Mortgage Interest Supplement: End of year Recipient Numbers & Expenditure: 2010 to 2013
|
Year |
Recipients |
Cost €000 |
|
2010 |
17,974 |
65,615 |
|
2011 |
18,988 |
67,849 |
|
2012 |
14,597 |
55,082 |
|
2013 |
9,768 |
35,063 |
|
End August 2014 |
6,970 |
15,000 |
