Michael Ring
Ceist:62 Mr. Ring asked the Minister for Social and Family Affairs her proposals and those of the Government in relation to rent subsidy; and the new regulations she intends to introduce. [24850/02]
Priority Questions. - Social Welfare Benefits.
The supplementary welfare allowance scheme, which is administered by the health boards, provides for the payment of a weekly or monthly supplement in respect of rent to any person in the State whose means are insufficient to meet their needs. Payment is subject to certain conditions, one of which relates to the amount of rent a person may incur. Each health board sets a limit on the amount of rent that an applicant for rent supplement may incur, taking the household size and other relevant circumstances into account. This is to ensure the rent is reasonable and that the health board is not subsidising the cost of overly large or overly expensive accommodation. Another condition is that each applicant is required to pay a minimum contribution towards his or her accommodation costs.
I am introducing two changes in relation to rent supplements. First, I have decided to maintain, at their current levels, the maximum rent levels set by the health boards. The current maximum rent levels will remain in place until the end of December 2003. Regulations giving effect to this were introduced last month. I decided to do this because rent levels have been stable for some time and, accordingly, there is no need for health boards to set higher levels of maximum rents for the purposes of the supplementary welfare allowance rent supplement scheme. I will arrange to have details of the levels appropriate to the different family sizes across all health boards made available to the Deputy.
Second, I have decided to increase the minimum contribution that each person is required to pay towards his or her accommodation costs. The minimum contribution is currently €7.62 per week and has not been increased since 1994. When the minimum contribution was set at €7.62 or £6 per week in 1994, it represented 10.2% of the personal rate of SWA. As I announced recently, I intend to restore the minimum contribution to approximately 10% of the minimum personal social welfare rate. Regulations giving effect to this change will be introduced shortly. Apart from these two changes, I have no other plans to amend the conditions for receipt of rent supplements.
Does the Minister think it is fair to introduce these changes at a time when thousands depend on rent subsidy and there is a housing crisis? The spending of over €300 million per year on rent subsidy represents mismanagement by the Government. If it put that money into providing social or affordable housing, we would not have half the problems we have. Does the Minister think it is fair that a lone parent in receipt of a social welfare payment of €137.50 per week should have to pay more on rent because of the changes she is introducing? Would it not be better if the Government targeted those charging high rents rather than the weak in society who depend on rent supplement? What will happen in the case of those who cannot afford the increased amount? We cannot regulate for one person or two or three people to get a three bedroomed or four bedroomed house. In many towns and cities one must take what one can get – what is available. Sometimes the only accommodation available for a lone parent with one child is a three bedroomed house. We cannot regulate for this because of the shortage of houses. How will the Minister assist those in receipt of social welfare payments who will have to pay more on rent when they can hardly live on their existing payment?
As I indicated, there has not been an increase in the minimum contribution since 1994. The elderly will not be under any pressure in the context of the rent supplement. It might be beneficial if I advised the Deputy of the maximum rent supplement made available. For a couple with one child or a one parent family with one child, to which the Deputy alluded, the maximum rent supplement made available in the Eastern Regional Health Authority area is €953 per month. The maximum rent supplement made available in the Western Health Board area is €175 per week. These are substantial amounts and represent the variable rents charged in respective parts of the country.
There has not been an increase since 1994 in the contributions recipients are required to pay. The minimum increase will still represent 10% of the rate of supplementary welfare allowance, which pertained heretofore. Given the increases in social welfare payments, the increase will be in equilibrium with the position that pertained in 1994.
I appreciate and agree that in the context of housing difficulties many constituents are looking for houses and would like to be facilitated. The scheme available supports those on low incomes, who are under pressure. As the Deputy is aware, community welfare officers are more than flexible in supporting those in greatest need and I am sure they will continue that ethos.
Why does the Government not cap rents rather than attack those on low incomes? Threshold is concerned about this matter. Has the Minister meet its representatives? Does she understand what they are saying about the problems these changes will create? Many who depend on rent subsidy are worried about these changes? The Minister is right in saying social welfare officers are understanding. Some are very good. The health boards do a good job and are reasonable. Why is the Government targeting those on low incomes and not taking on those who charge high rents? This is a sovereign country. There is a shortage of housing. Why is the Government not doing something to address the problem? It should not be attacking those who are trying to provide homes for their families in difficult circumstances due to the shortage of accommodation. It must assist those on low incomes. If such people find it difficult to cope, the Government must instruct the health boards to deal with them in a reasonable way.
The ethos of the scheme is to support those who are less well off and cannot manage. I am sure Deputies will agree that one of the problems is that landlords are increasing rents to the level of the maximum rent supplement available from the health boards under the supplementary welfare allowance scheme. There is a proposal to establish a private residential tenancy board. I will consult my colleague, the Minister of State with responsibility for housing, in that regard. We would like those who are less well off not to be exploited in the private rented market. The supplementary welfare allowance rent subsidy scheme is in place to support those who are less well off. The take up of the scheme reflects the fact that we are supportive of those in most need.