Dáil Éireann Debate, Tuesday - 14 October 2014
9. Deputy Ciarán Lynch asked the Tánaiste and Minister for Social Protection her plans to alter the system of providing rent allowance to introduce more flexibility; her views on the issues raised by a person (details supplied); and if she will make a statement on the matter. [39007/14]
View answer30. Deputy Robert Dowds asked the Tánaiste and Minister for Social Protection if she will provide an update on rent allowance in private dwellings for persons on the housing list; and if she will make a statement on the matter. [39107/14]
View answerI propose to take Questions Nos. 9 and 30 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.
Despite pressures on the social protection budget, the last review of maximum rent limits in mid-2013 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%.
The Department is currently reviewing maximum rent limits. However, 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 tenancy sustainment 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, almost 140 families have had their rent supplement claims revised by the Department.
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). HAP is being introduced to provide a more integrated system of housing supports and has been designed to allow any households that find full-time employment to remain in the scheme.
HAP was introduced in Cork County Council, Limerick City and County Council and Waterford City and County Council on 15th September, 2014 and in South Dublin County Council, Kilkenny County Council, Monaghan County Council and Louth County Council on 1st October, 2014. Department of Social Protection officials are working closely with those in the lead Department of Environment, Community and Local Government to support the implementation of HAP within the selected local authorities.
In areas where HAP is in operation, rent supplement will continue to be paid to new clients who are already in the private rented sector but who, generally because of a loss of income through unemployment, require short term income support in order to pay their rent. Arrangements are also being made with the relevant local authorities to transfer existing customers, in receipt of rent supplement for periods of 18 months or more, to HAP. These measures will return rent supplement to fulfilling its original intention of being a short term support.
