the Minister for Social, Community and Family Affairs his views with regard to the issue of rent costs for those on social welfare incomes; and if he will make a statement on the matter. [24935/00]
Other Questions - Rent Supplement.
6.
The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent for any person in the State whose means are insufficient to meet their needs. The scheme is administered on behalf of my Department by the health boards and my Department has no function in deciding entitlement in individual cases.
The purpose of rent supplements is to assist with reasonable accommodation costs of eligible persons living in private rented accommodation who are unable to provide for their accommo dation costs from their own resources and who do not have accommodation available to them from another source. Rent supplements are normally calculated to ensure that the person after the payment of rent has an income equal to the supplementary welfare allowance basic weekly payment rate, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources.
Each health board is required to set reasonable maximum rent levels for various household types as a basis for calculating the maximum amount of rent supplement payable in each area under the supplementary welfare allowance scheme. The limits are set using local knowledge as to what constitutes a reasonable rent for private rented accommodation for various household types within and across the health board area. The average weekly rent supplement payment differs in each health board as the rents charged for accommodation vary across each health board area, reflecting market forces and local conditions. Colour RGB 170,0,0For example, the limits set in all health board areas take into account information received from local auctioneers and letting agents regarding average rents charged in the area.
These maximum rent levels are reviewed regularly by the boards to take account of the actual fluctuations in accommodation costs observed in each area. Health boards must satisfy themselves that accommodation is generally available within the limits which they set. When accommodation is no longer available within these limits, rent levels are reviewed and revised upwards, at the initiative of the health boards, in the light of their experience in dealing with claims for rent supplement.
If any tenant is experiencing difficulties, the health board has discretion to award a supplement based on an amount of rent which exceeds the maximum level set where there are extenuating medical or social circumstances having regard to the applicant's means and all the other requirements of the legislation.
Additional Information:The overall result is that, regardless of which weekly social welfare payment they receive, a single person on rent supplement has £70 per week after they have paid their rent and a couple has £117 per week, with an increase of £13.20 for each qualified child in both cases.
As the Deputy may be aware, the Government has decided in principle to introduce a new scheme of private sector rent assistance. The new scheme will be operated by the local authorities and will help to ensure that the best possible housing options are made available to people with long-term housing needs who currently rely on supplementary welfare allowance rent supplement.
In addition, a review of the supplementary welfare allowance scheme is currently under way. All aspects of the scheme will be examined, including the arrangements governing payment of rent supplements to people on social welfare incomes. The report is due at the end of next year. I believe that these initiatives will lead to substantial improvements for people on social welfare incomes who are renting in the private sector.
My colleague, Deputy De Rossa, represents the farmers of Fingal, who are among the most productive in Ireland. He is now an expert on milk quotas and horticulure.
This is not relevant. The Deputy should ask a question and return to the relevant matter.
Does the Minister accept that there have been outrageous increases in rent, often for people on a social welfare income? Over the last six to nine months in this city we have become used to increases from £500 per month to £900 or £1,000 per month. Those are outrageous increases of up to 80% and often the possibility for a lone parent facing this kind of increase is precluded if she is to hold onto her house.
Can the Minister take dramatic action? Deputy De Rossa said this would be channelled through the housing policy of local authorities. Why is this not being done?
A review was carried out recently, while the interdepartmental committee looked at this issue and published a report in August 1999. Announcements will be made in relation to the first phase of transferring responsibility for rent supplements to local authorities. However, my Department will retain some involvement.
Most parties, at local and national level, want a better connection between the payment of rent supplements and the provision of housing in particular areas. It is interesting to note that from 1989 to 1999 the rent and mortgage supplement increased from £7 million to approximately £107 million. That is an incredible increase in a short period.
I accept the point in relation to rents. However, the health boards have total control—
The Minister's minute is concluded.
—in that they do not have to relate to me or the Department of Finance in relation to the setting of rents.
I must point out to the House that supplementary questions and answers are strictly limited, under Standing Orders, to one minute.
(Carlow-Kilkenny): While we accept that the rent supplement scheme is excellent, does the Minister accept that the higher the Minister sets the limit the greater will be the increase in rents? Is there a better way of giving money to people in those circumstances which will not encourage an increase in rent? As Deputy Broughan stated, rents are simply rocketing. I have been approached by people who informed me that they cannot afford to pay their rent and that there is a limit on what they can obtain from the health boards. Is there a better way of giving money to people other than giving them a rent allowance which is continually increasing, which, in turn, leads to increases in rents?
The honest answer is that I do not think there is a better way to do so. The health boards only react to what happens in the market in relation to rents. I accept that rents have risen dramatically but health boards, at their own discretion without reference to my Department or the Department of Finance, can raise the level of rent in their areas, depending on local circumstances. That is one of the reasons the rent supplement has increased. The number of people in receipt of rent supplement over the ten year period to which I referred has not increased dramatically but the money on offer has increased.
We have exceeded the six minutes allocated for this question. We must proceed to Question No. 7.
It is a broader issue.