Wednesday, 30 Sep 2015

Written Answers Nos. 42-8

Rent Supplement Scheme Administration

Questions (42)

Alan Farrell

Question:

42. Deputy Alan Farrell asked the Tánaiste and Minister for Social Protection further to Parliamentary Question No. 41 of 5 February 2015, her views that this case was adequately investigated given that payment of rent supplement was reinstated within a week of suspected fraud being reported; if she will provide information regarding what her Department constitutes as fraud in relation to rent supplement payments; the action she will take given that rent supplement payments in this case were not used by the recipient for their intended purpose; the further action she will take to prevent such instances occurring in the future; and if she will make a statement on the matter. [33013/15]

Written answers

Tánaiste and Minister for Social Protection

There are approximately 65,000 rent supplement recipients, of which over 24,700 are in Dublin, for which the Government has provided a total of over €298 million in 2015. Under the legislative provisions governing rent supplement, the Department’s relationship is with the tenant; the tenant makes the application for rent supplement and, subject to the tenant satisfying the eligibility criteria, payment is generally made to the tenant to assist them with their accommodation needs. There is no direct contractual relationship between the landlord and the Department in the administration of the scheme.

Where the Department is notified of issues regarding a tenant not passing the Rent Supplement to the landlord, the Department can request the tenant to authorise payment directly to the landlord. However, this can only be done with the tenant’s consent.

In this case, it is alleged that, having received rent supplement payments from the Department, the client failed to pass the payment to the landlord. There is no allegation that the client did not satisfy the eligibility criteria for receipt of rent supplement and therefore there is no reason to consider that the rent supplement claim at issue was fraudulent.

Any contract/lease agreement that exists between the tenant and the landlord is a private matter, regardless of whether or not Rent Supplement is in payment. Any difficulties that arise between the two parties are a matter for either party to resolve or to pursue through the Private Residential Tenancies Board (PRTB) or through civil proceedings. The landlord in this case informed the Department in May 2015 that he had a PRTB judgement against the tenant.

Every effort is made to ensure the control of schemes and that all information received, including notably any allegations of fraud, are acted upon promptly and in an effective and efficient manner. The attention of staff is regularly drawn to best practice in relation to the control of Schemes.

Rent Supplement Scheme Expenditure

Questions (43)

Ruth Coppinger

Question:

43. Deputy Ruth Coppinger asked the Tánaiste and Minister for Social Protection her plans to reverse the cut to rent supplement in view of the current housing and homelessness crisis. [33037/15]

Written answers

Tánaiste and Minister for Social Protection

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting approximately 65,000 people at a cost of €298 million in 2015.

Over 13,700 rent supplement tenancies have been awarded this year, of which almost 4,300 are in Dublin, showing that landlords are accommodating significant numbers under the scheme.

A review of the rent limits undertaken earlier this year found that the impact of increasing limits at a time of constrained supply will increase costs disproportionately for the Exchequer with little or no new housing available to recipients.

Rather than increasing limits at this time rent supplement policy will continue to allow for flexibility where landlords seek rents in excess of current limits. Flexibility is provided under the National Framework for Tenancy Sustainment for both existing customers of the scheme and new applicants. Under this measure tenants' circumstances are considered on a case-by-case basis, and rents are being increased above prescribed limits as appropriate. This flexible approach has already assisted approximately 4,000 households throughout the country to retain their rented accommodation. In addition, the Department, in conjunction with Threshold, operates a special Protocol in the Dublin and Cork areas where supply issues are particularly acute, with plans to extend this arrangement to Galway City.

I can assure the Deputy that where Departmental staff are notified of a threat of tenancy loss these measures are implemented as appropriate. Persons in receipt of rent supplement at risk of losing their tenancy are advised to contact the Department’s Community Welfare Service or Threshold’s Tenancy Protection Service without delay.

I am keeping the matter under review.

Social Welfare Benefits

Questions (44)

Bernard Durkan

Question:

44. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent, if any, to which scope exists for an increase to be made to the various social welfare payments that have been subject to reduction or cessation, or have received no increase in payment for several years; and if she will make a statement on the matter. [33085/15]

Written answers

Tánaiste and Minister for Social Protection

Budget 2015 was the first Budget in recent years where there was scope to make improvements for welfare recipients, and in this regard, I was pleased to be in a position to increase Child Benefit by €5 per child per month, to increase the Living Alone Allowance, which is paid to pensioners and people with disabilities who live alone, to €9 per week, and introduce a new Back to Work Family Dividend to provide an additional incentive for families to move from welfare to work. I also partially restored the Christmas Bonus, which had been abolished in 2009, and increased funding for School Meals by €3 million.

The Government’s Spring Statement, published last April, stated that “On the basis of present estimates, Budget 2016 will include a package within the range of €1.2 billion to €1.5 billion, to invest in services, support employment and boost growth potential while still maintaining fiscal prudence.”

The Government has decided that this ‘fiscal space’ will be split evenly between taxes and expenditure. The expenditure component, of up to €750 million, will have to address public sector pay demands, as well as capital and current expenditure. It is within this context that deliberations for Budget 2016 will be considered.

I held my annual Pre-Budget Forum on 3 July, during which I listened to the views and recommendations of almost 40 community and voluntary groups in relation to the their priorities for the upcoming Budget. The National Economic Dialogue held later that month was also a valuable contribution to the overall budgetary process. The scale and composition of the 2016 DSP Budget package is currently under consideration and will be announced on October 13.

Pension Provisions

Questions (45)

Willie O'Dea

Question:

45. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection her plans to introduce auto-enrolment for pensions; and if she will make a statement on the matter. [33032/15]

Written answers

Tánaiste and Minister for Social Protection

In line with the Statement of Government Priorities, in January of this year the Government decided to proceed with work to develop a roadmap and timeline for the introduction of a new, universal, supplementary workplace retirement saving system.

This work is being progressed by a Universal Retirement Savings Group (URSG), the broad role of which is to consider the constituent factors involved in constructing an efficient and effective universal retirement savings system and broad scheme design features, cost estimates and phase-in timeframes.

The URSG consists of senior officials from Government departments and those public bodies with a particular responsibility and expertise in the area. Membership also includes international representatives from the UK and the OECD who bring significant experience in designing, delivering and assessing supplementary pension systems.

In undertaking its work programme the group is consulting with and has invited submissions from pensions experts external to the group. Currently, representatives from the group are also engaging with a broad range of sectorial interests such as those from the pensions industry, representatives of employers, trade unions and consumer/interest groups.

On completion of its work, the Universal Retirement Savings Group will submit its recommendations to Government in the form of a roadmap and estimated timeline for introduction.

Private Rented Accommodation Price Controls

Questions (46)

Richard Boyd Barrett

Question:

46. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection her views on the ever-increasing number of landlords who are refusing to accept rent allowance, and the extremely low level of the rent caps in view of rising rents; the reasons these issues are contributing significantly to the rising levels of homelessness; and if she will make a statement on the matter. [33041/15]

Written answers

Tánaiste and Minister for Social Protection

Rent supplement plays a vital role in housing families and individuals, with the scheme currently supporting approximately 65,000 people at a cost of over €298 million in 2015.

A total of over 13,700 rent supplement tenancies have been awarded since the start of the year, of which almost 4,300 are in Dublin, showing that landlords are in fact accommodating significant numbers of people under the scheme. The Department is also engaging with the Department of Justice and Equality regarding draft legislation on the issue of landlords refusing rent supplement tenancies.

A review of the rent limits undertaken earlier this year found that the impact of increasing limits at a time of constrained supply will increase costs disproportionately for the Exchequer with little or no new housing available to recipients. Rather than increasing limits at this time rent supplement policy will continue to allow for flexibility. This flexible approach has already assisted approximately 4,000 households throughout the country to retain their rented accommodation. In addition, the Department, in conjunction with Threshold, operates a special Protocol in the Dublin and Cork areas where supply issues are particularly acute, with plans to extend to Galway City.

The Department, including through its Homeless Persons Unit in Dublin, works closely with local authorities, Homeless Action Teams (HATs), agencies and the voluntary sector in assisting homeless persons to access private rented accommodation. This ensures that, where possible, people are diverted away from homeless services and towards community-based supports.

I am keeping the matter under close review.

Rent Supplement Scheme Payments

Questions (47)

Willie O'Dea

Question:

47. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection her plans to raise the cap for rent allowance and the housing assistance payment; and if she will make a statement on the matter. [33034/15]

Written answers

Tánaiste and Minister for Social Protection

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting approximately 65,000 people at a cost of €298 million in 2015.

Over 13,700 rent supplement tenancies have been awarded this year showing that landlords are accommodating significant numbers under the scheme.

A review of the rent limits undertaken earlier this year found that the impact of increasing limits at a time of constrained supply will increase costs disproportionately for the Exchequer with little or no new housing available to recipients.

Rather than increasing limits at this time rent supplement policy will continue to allow for flexibility where landlords seek rents in excess of current limits. Flexibility is provided under the National Framework for Tenancy Sustainment for both existing customers of the scheme and new applicants. Under this measure tenant’s circumstances are considered on a case-by-case basis, and rents are being increased above prescribed limits as appropriate. This flexible approach has already assisted approximately 4,000 households throughout the country to retain their rented accommodation. In addition, the Department, in conjunction with Threshold, operates a special Protocol in the Dublin and Cork areas where supply issues are particularly acute, with plans to extend this arrangement to Galway City.

I am keeping the matter under review and can assure the Deputy that where Departmental staff are notified of a threat of tenancy loss these measures are implemented as appropriate. Persons in receipt of rent supplement at risk of losing their tenancy are advised to contact the Department’s Community Welfare Service without delay.

Policy in relation to the Housing Assistance Payment (HAP) is a matter for the Department of the Environment, Community and Local Government.

Rent Supplement Scheme Eligibility

Questions (48)

Richard Boyd Barrett

Question:

48. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection if she will consider extending rent allowance support to those persons who are working full-time and who are on very low incomes in view of rapidly rising rents and the growing phenomenon of the working homeless and bearing in mind that the Government's policy is to move to the housing assistance payment scheme, which allows for recipients to work full-time; and if she will make a statement on the matter. [33042/15]

Written answers

Tánaiste and Minister for Social Protection

The purpose of the rent supplement scheme is to provide short-term income support to assist with accommodation costs and not to act as an alternative to the other social housing schemes operated by the Exchequer.

There are currently approximately 65,000 rent supplement recipients for which the Government has provided over €298 million for 2015, which represents a transfer of funding of over €20 million to the Department of the Environment, Community and Local Government to support the Housing Assistance Payment (HAP).

As outlined by the Deputy, the Department’s overall strategic policy direction is to return rent supplement to its original purpose, short-term income support, by transferring responsibility for persons with long-term housing needs to the local authorities under HAP.

Officials in the Department continue to work closely with those in the Department of the Environment, Community and Local Government and the local authorities to further roll out HAP which is being administered in 13 local authority areas with additional authorities coming on stream before year end.

Rent supplement is not payable where a person or spouse/partner is in full time employment of 30 hours or more per week. However, a person on rent supplement who is deemed by a local authority to be eligible to participate in the Rental Accommodation Scheme (RAS) may engage in full-time employment, subject to satisfying the standard means test, and may still be paid rent supplement. Any changes to social welfare schemes can only be considered in a budgetary context.