Dáil Éireann Debate, Tuesday - 12 May 2015
239. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Social Protection if a review has been conducted of the maximum rate of rent allowance available by area; if so, when these new rates will become active; the criteria used to determine these rates; and if she will make a statement on the matter. [18325/15]
View answerThe Department recently published its review of the rent limits “Maximum Rent Limit Analysis and Findings Report”, and it is available on www.welfare.ie. One of the key messages of the review is that rent supplement continues to play a vital role in housing families and individuals, with the scheme supporting 69,000 people this year at a cost of over €298 million.
Between the rent supplement scheme and the Rental Accommodation Scheme (RAS) administered by the Department of the Environment, Community and Local Government, the State accounts for a third of the private rented market. The State is therefore a very significant player in the sector which has a responsibility not alone to rent supplement recipients but also to the market as a whole, including all those in private accommodation. The review finds that increasing rent limits at this time could potentially add to further rental inflation in an already distressed market, affecting not alone rent supplement recipients, but lower-income workers and students. Increasing limits at a time of constrained supply will yield only a very marginal increase in available supply for rent supplement recipients, with the only certainty that raising limits will increase costs disproportionately for the Exchequer with little or no new housing available to new recipients.
In light of the review's findings, the Department will instead continue to allow for flexibility in assessing customers' accommodation needs through the National Tenancy Sustainment Framework. Under this approach, each tenant's circumstances is considered on a case-by-case basis and rents can be increased above prescribed limits as appropriate. I am satisfied that this is the appropriate response at this time which has assisted in excess of 1,500 rent supplement recipients throughout the country to retain their rented accommodation.
In addition, the Department in conjunction with Threshold operates a Tenancy Sustainment Protocol in the Dublin and Cork city areas where supply is most acute. The primary objective of the Protocol is to ensure a speedy intervention to ensure that families at immediate risk of losing their tenancy get rapid assistance. Of the 1,500 cases referred to above, some 560 Dublin households were supported as a result of the Protocol and 14 in Cork city.
The review clearly points out that the main cause of difficulty for persons renting or seeking to rent at this time is the much reduced availability of affordable private rented accommodation. The issue of supply is being addressed by Government through the Construction 2020 Strategy and the Social Housing Strategy. In addition, my colleague, the Minister for the Environment, Community and Local Government, is considering a number of policy options in relation to achieving greater rent certainty
I am keeping this matter under close review to ensure that the appropriate supports continue to be provided for rent supplement recipients.
