Dáil Éireann Debate, Thursday - 21 September 2017
226. Deputy Brendan Howlin asked the Minister for Employment Affairs and Social Protection the estimated cost in 2018 of increasing rent supplement limits to reflect market rents; the cost of an increase that would be required to capture the 35th percentile and the 50th percentile of the market; and if she will make a statement on the matter. [40036/17]
View answerRent supplement plays a vital role in housing families and individuals, with the scheme currently supporting 38,600 recipients at a cost of €253 million in 2017.
The Department carried out a review of the rent limits in 2016 with the commitments contained in the Programme for a Partnership Government and increased limits were introduced in all areas of the country with effect from 1 July 2016. The review process represented a realignment of the maximum rent limits with agreed rents, with rents generally benchmarked against the 35th percentile of those registered with the Residential Tenancies Board. The review’s methodology is evidenced based and reflects the pressures on rental properties in each location.
The information requested by the Deputy, the estimated cost to increase rent limits to market rents at the 35th percentile and the 50th percentile for 2018, is not available.
The rent supplement scheme is being administered to take account of the on-going rental market difficulties through the implementation of a targeted case-by-case approach that allows for flexibility where landlords seek rents in excess of the rent limits. In addition, a Protocol arrangement is in place with Threshold and is operational in the areas where supply issues are particularly acute covering Kildare, Dublin, Cork, Meath, Wicklow and Galway City. For 2017 to date, some of 1,400 recipients have been supported with increased rent payments above the rent limits.
As the Deputy will be aware the strategic policy direction of my Department is to return rent supplement to its original purpose of being a short-term income support with the introduction of the HAP scheme. Any further review of prescribed rent limits would have to be considered in a budgetary context and in conjunction with my colleague, the Minister for Housing, Planning and Local Government.
I trust this clarifies matters for the Deputy.
