I propose to take Questions Nos. 131, 150 and 180 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 73,500 rent supplement recipients for which the Government has provided over €344 million for 2014.
Maximum rent limits are generally reviewed every 18 months. The most recent review was completed in June 2013 with revised rent limits introduced on 17 June 2013. Despite pressures on the social protection budget, the last review saw rent limits increase in line with market rents in some areas, including Dublin and Galway, with Dublin limits increasing by a weighted average of 9%.
A new rent limit review has commenced within the Department and involves a comprehensive analysis of information from a range of sources including rental tenancies registered with the Private Residential Tenancies Board (PRTB), the Central Statistics Office rental indices, websites advertising rental properties, relevant Departments and Agencies and non-Government organisations. Submissions have also been received from the Residential Landlords Association of Ireland and the Irish Property Owners Association representing the views of landlords. Any changes to social welfare supports have to be considered as part of the forthcoming budgetary process.
The current difficulties in the rental market and the difficulties faced by prospective tenants, including those seeking access to rent supplement, is a shortage of supply of suitable properties in areas of high demand. I would be concerned that raising rent limits is not the solution to the problem as it is likely to add to further rental inflation and impact, not alone on rent supplement recipients, but also on many lower income workers and students. The Government has recently launched its Construction Strategy with the aim of increasing housing supply generally.
I can assure the Deputies that officers administering rent supplement throughout the country have considerable experience in dealing with customers and make every effort to ensure that their accommodation needs are met. Discretionary powers are available to staff to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant. A notice reminding staff of their statutory discretionary power to award a supplement for rental purposes in exceptional cases, for example, when dealing with applicants who are at risk of losing their tenancy was circulated in July 2014.
In view of the current supply difficulties, the Department has agreed a protocol with the Dublin local authorities and voluntary organisations so that families on rent supplement who are at risk of losing their accommodation can have more timely and appropriate interventions made on their behalf. Since the launch of this initiative in mid-June 2014, approximately 120 families have had their rent supplement claims revised by the Department.
The following tabular statement provides details of the number of rent supplement recipients in County Meath since 2011 onwards. Statistics in relation to the numbers of rent supplement claims withdrawn are not available.
Rent supplement is calculated to ensure that an eligible person, after the payment of rent, has a minimum income equal to the rate of supplementary welfare allowance (SWA) appropriate to their family circumstances, less a minimum weekly contribution of €30 for a single person or €40 for a couple. Where a person has an additional income above the rate of SWA they are, in certain circumstances, required to top up their rent. It is very difficult for the Department to identify under the counter top ups when both the tenant and landlord are in collusion and if the top up payment is being made in cash.
In such cases the Department’s representative will discuss the circumstances of the case with the tenant before making any decision in relation to ongoing entitlement. The primary concern in dealing with such cases is to protect the tenant. The Department has not sought any prosecutions in relation to false declarations of rent payable to the landlord and does not maintain statistics on the number of rent supplement payments terminated due to this reason.
The Department’s strategic policy direction is to transfer responsibility for recipients of rent supplement with a long-term housing need to local authorities under the Housing Assistance Payment (HAP). Officials are working closely with those in the lead Department of Environment, Community and Local Government, in introducing HAP on a phased basis, initially in Cork County, Limerick City and County and Waterford City and County from 15th September 2014.
Tabular Statement
Rent Supplement Recipients in Meath 2011 to present
|
Period
|
Recipients
|
|
December 2011
|
2,723
|
|
December 2012
|
2,143
|
|
December 2013
|
1,941
|
|
End September 2014
|
1,777
|
