Vol. 537 No. 1
6 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the plans he has to bring forward proposals in relation to the difficulties facing families living on social welfare income in accessing sufficient rent supplement to keep them from becoming homeless, especially in view of spiralling rents in urban areas. [15292/01]
There is already a system of income maintenance supports for people living on social welfare incomes who have difficulties in meeting their housing costs. Rent and mortgage interest supplements paid as part of the supplementary welfare allowance scheme are designed for that purpose. These 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. There is also provision in the supplementary welfare allowance scheme which allows health boards to assist people with rent deposits by way of an exceptional needs payment.
I share the Deputy's concern about escalating rents in the current housing market. There is a process in place to adjust rent supplement payment levels to take account of that. Each health board is required to set reasonable maximum rent levels in respect of various classes of persons, for example, single persons, couples, lone parents with one child, etc., as a basis for calculating the amount of rent supplement payable. 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.
These maximum rent levels are reviewed regularly by the boards to take account of fluctuations in accommodation costs observed in each area. 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.
Health boards must satisfy themselves that accommodation is generally available within the limits which they set. If any tenant is experiencing difficulties, the health boards have discretion to award a supplement based on the 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.
Income maintenance payments deal with the symptoms of the problem but it is also necessary to deal with the underlying imbalances in the overall housing system. As the Deputy will 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 a full range of housing options is made available to people with long-term housing needs, many of whom currently rely on supplementary welfare allowance rent supplement.
Additional informationThe Government has also taken a number of other initiatives to improve the supply of social and affordable housing in response to the current housing situation. This is the best approach to meeting the housing needs of people living on social welfare incomes.
What is the overall figure for rent supplement and for mortgage interest supplement? To give two examples of the type of cases that come to my desk from around the country, because I am spokesperson for the Labour Party in this area, in urban areas a rent of perhaps £600, where there would have been a rent supplement of £400, increased recently to £850—
As I pointed out to the Deputy, the purpose of Question Time is to seek information, not to give it.
The rent went up by £200 or £250 but rent supplement only increased by £50 to £450 so, in effect, the tenant was left paying double the amount per week, £100, on lone parent's income. A separated person from the south has only been awarded £7 a week on the basis of a £100 mortgage she has to pay, based on social welfare income. Many Deputies would have countless similar examples.
The Deputy has exceeded the one minute.
As I said to the Taoiseach some weeks ago, the housing strategy in my own county—
The Deputy must conclude.
We will have the same number of people on the housing lists in five years' time as we have now. As the Minister lays down to rest every night in Dundalk, there are 200 people sleeping rough on the streets of Dublin. We need to take a much more pro-active role in this area.
I remind the Deputies, and the Minister, that these are ordinary questions and supplementary questions and the answers are limited to one minute.
We are seeking a more vigorous Administration.
This has been a vigorous and successful Administration.
The Minister must be joking.
The number of people in receipt of rent allowance has generally remained the same over the past number of years – it has not increased. That is somewhat surprising given the difficulties regarding accommodation. Rents have gone up fairly dramatically over the past number of years. I have often stated that health boards have absolute discretion on the level of rent. They do not have to come to my Department or the Department of Finance to set the levels of rent. They do so based on their local knowledge.
I can give the various maximum rent levels in each health board area for the years 1999 to 2000. However, while there are difficulties in certain areas, generally the rent allowance scheme works reasonably well and accommodates the fluctuations. As I said in the reply, there are cases where assistance, in addition to the maximum levels, has been given to enable people to meet their particular circumstances.
Will the Minister deplore the practice whereby some landlords in the Dublin area refuse to accept tenants because they are in receipt of rent supplements? In large tracts of Dublin it is virtually impossible to obtain rented accommodation because of the bias shown by landlords against those on rent supplements.
When does the Minister expect the new scheme under which local authorities will administer rent supplement to be up and running?
The latter issue is now a matter for the Department of the Environment and Local Government. However, negotiations on industrial relations issues are, unfortunately, at a stalemate. If the Deputy wishes to table a separate question on this issue to me or the Minister for the Environment and Local Government, we will be able to give him a more detailed account of the up-to-date position.
I deplore landlords who will not accept people on the basis that they are in receipt of rent supplements. This was one of the reasons we introduced a system of registration for landlords which, unfortunately has been patchy over the past number of years.
We must move on to Question No. 7.
May I ask a brief supplementary question?
No, we are well over the limit.
Does the Minister agree that the reason the register is not working is tax evasion?
Absolutely.
We must move on.
The new scheme was announced four years ago by Deputy De Rossa, who was then Minister for Social Welfare, whereby responsibility would be given to the local authorities.
No, he did not.
He did.
Can we deal with Question No. 7?
It was a recommendation.
That was four long years ago.
Deputy De Rossa did nothing about it. The Government took the decision about 18 months ago. There was no Government decision before that.
Deputy Broughan has proved the adage that if you give an inch he will take a yard.
