Tuesday, 17 December 2019

Questions (728)

Darragh O'Brien

Question:

728. Deputy Darragh O'Brien asked the Minister for Employment Affairs and Social Protection the first and full-year cost of increasing rent supplement payments by 5%,10%, 15%, 20% and 25%, respectively. [53428/19]

View answer

Written answers (Question to Employment)

Rent supplement continues its vital role in supporting families and individuals in private rented accommodation, with the scheme currently supporting 17,200 recipients for which the Government has provided €132.4 million for 2019.

The additional full year cost for 17,200 customers, increasing rent limits by: 5%; 10%; 15%; 20%; and 25%, respectively, is provided in the tabular statement below.  The costing exercise shows the full impact for the indicated rent limit increases and assumes that landlords will be able to reference their rents to these new benchmarks at the start of the year.

Any proposal to alter rent limits would have to be considered in a budgetary context.

In recognition of the on-going rental market difficulties, the Department continues to implement a targeted case-by-case flexible payment policy approach that allows for flexibility where landlords seek rents in excess of the rent limits.  To date, approximately 14,300 cases have been provided additional flexible payment arrangements, i.e., have received support in excess of the prevailing rent limits.

I trust this clarifies the matter for the Deputy.

Tabular Statement: Full Year Costs Impact for 17,200 Recipients - Increasing Rent Limits

Rent Limit Percentage Increase

Additional Full Year Cost €'000 

Percentage Increase Expected**

5%

€6,864

6.30%

10%

€13,328

12.30%

15%

€20,499

18.90%

20%

€26,799

24.80%

25%

€33,188

30.70%

  ** The annual full year costs for 17,200 customers at current tenancy rates is forecast at €108.2m. 

Question No. 729 withdrawn.