Vol. 563 No. 6
6 Mr. Howlin asked the Minister for Social and Family Affairs her views on whether the decision to cap the rent allowance is leading to homelessness and imposing extreme hardship on many in receipt of rent allowance; and if she will make a statement on the matter. [8471/03]
The supplementary welfare allowance scheme which is administered by the health boards provides, inter alia, 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.
The maximum level of rent, which a person may incur in order to be eligible to receive rent supplement, is determined by each health board in respect of its functional area and is set by reference to local considerations.
Data provided by the Central Statistics Office show that rent levels have been stable for some time. In fact, rents have been falling since last April and are now lower than they were one year ago.
I am concerned to ensure that increases in maximum rent levels should be set by the health boards in response to rises in market rent levels. However, it appears that these increases may actually have been driving up rents. In the circumstances, I decided to maintain the maximum rent levels set by the health boards at their current levels until the end of December 2003. Regulations giving effect to this were introduced on 22 November 2002.
I am satisfied that, rather than having an adverse impact on social welfare recipients in the private rented sector this change will improve their position in acquiring accommodation. Setting maximum rent limits higher than are justified by the open market distorts the rental market and leads to a general rise in rent levels that disadvantages people on low incomes.
If an individual is unable to secure accommodation at or below the applicable maximum rent level it is open to the health board to provide a payment above the maximum level as an exceptional measure for a limited period. This measure is designed to provide the person concerned with an opportunity to secure alternative accommodation at the applicable rent level. My Department is not aware of any case where the change in relation to the maximum rent levels has resulted in individuals being made homeless.
The effects of the change are being monitored on an on-going basis by my Department. In this regard the health boards are required to notify my Department of instances where supplements are put in payment in cases where exceptional circumstances are involved. Since the new regulations were introduced 28 such cases have been notified to my Department.
