Dáil Éireann díospóireacht -
Tuesday, 20 May 2003

Vol. 567 No. 1

Written Answers. - Social Welfare Benefits.

Dan Neville

Ceist:

106 Mr. Neville asked the Minister for Social and Family Affairs her plans 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 the recent capping of rent supplement. [13532/03]

Joe Sherlock

Ceist:

116 Mr. Sherlock asked the Minister for Social and Family Affairs the measures she is taking to address the hardship and homelessness being created by the cap placed on the rent allowance recently; and if she will make a statement on the matter. [13551/03]

Jan O'Sullivan

Ceist:

427 Ms O'Sullivan asked the Minister for Social and Family Affairs if her attention has been drawn to the hardship and fear of homelessness that has arisen from the decision to cap rent allowances; if she will reconsider the measure; and if she will make a statement on the matter. [13582/03]

Minister for Social and Family Affairs (Mary Coughlan)

I propose to take Questions Nos. 106, 116 and 427 together.

The supplementary welfare allowance scheme is administered by the health boards. Among other things, the scheme provides for the payment of a weekly or monthly supplement in respect of rent to eligible people in the State whose means are insufficient to meet their accommodation needs. The amount of rent supplement payable was always subject to a cap to ensure that reasonable rents were charged. The maximum level of rent that a person may incur and still qualify for rent supplement is determined by each health board. These maximum rent levels are set by reference to local considerations.

I am concerned to ensure that increases in maximum rent levels are set by the health boards in response to rises in market rent levels. 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.

Data provided by the Central Statistics Office show that rent levels have been falling consistently since April 2002 and are now lower than they were in August 2001. 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 this change is not having an adverse impact on social welfare recipients in the private rented sector. In fact, since the beginning of the year, the number of households in receipt of a rent supplement has increased by 6.6%, from 54,213 to 57,780.

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 any person being made homeless. In addition, the Dublin Homeless Agency, which is in regular contact with providers of services to the homeless, has advised my Department that it too is not aware of any individual being made homeless as a result of this measure.

The effects of the change are being monitored on an ongoing 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, 71 such cases have been notified to my Department. I am satisfied that the current regulations are appropriate, given that rent levels are stable and falling in many cases. My Department will continue to monitor these matters closely.