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Rent Supplement Scheme Expenditure

Dáil Éireann Debate, Thursday - 9 July 2015

Thursday, 9 July 2015

Questions (101)

Ruth Coppinger

Question:

101. Deputy Ruth Coppinger asked the Tánaiste and Minister for Social Protection following the pre-budget forum held on 3 July 2015 if she will increase rent supplement levels to address homelessness. [28150/15]

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Written answers

Rent supplement continues to plays a vital role in supporting approximately 67,000 families and individuals at a cost of €298 million. Over 10,000 new tenancies have been processed since the start of the year, indicating that significant numbers of people are being accommodated under the scheme.

I welcome the valuable inputs and proposals provided by the various groups which attended the pre-budget forum on 3 July 2015, and note the views to increase maximum limits under the rent supplement scheme.

The Department carried out a review of the maximum rent limits which found that increasing rent limits could potentially add to further rental inflation in an already distressed market, affecting not alone rent supplement recipients, but lower-income workers and students. Between rent supplement and the Rental Accommodation Scheme administered by the Department of the Environment, Community and Local Government, the State accounts for a third of the private rented market and is, therefore, a very significant player in the sector. The Department’s review of rent limits points out that the main cause of difficulty for persons renting and seeking to rent is the reduced availability of affordable private rented accommodation. In this regard, the Government will deliver significantly increased supply of social and affordable housing through the Construction 2020 Strategy and the Social Housing Strategy.

Rather than a blanket increase in rent limits which at this time will not address the fundamental issue, the Department has implemented preventative measures to provide for flexibility in assessing customers’ accommodation needs through the National Tenancy Sustainment Framework. Under this approach, the circumstances of tenants are considered on a case-by-case basis and rents are being increased above prescribed limits. The Department also works with Threshold’s Tenancy Sustainment service in Dublin and Cork city where supply is most acute, with plans under way to extend this service to Galway City. This flexible approach has already assisted over 2,500 rent supplement households nationwide through increased rent payments.

Where Departmental staff are notified of a threat of tenancy loss, the preventative measures are implemented as appropriate. The Department has also undertaken a communications campaign to encourage people at risk to avail of these measures. I am continuing to keep this matter under review to ensure that the appropriate supports continue to be provided in the light of vital feedback which we receive from the community and voluntary sector.

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