The supplementary welfare allowance scheme, which is administered on my behalf by the community welfare division of the Health Service Executive, provides for the payment of a weekly or monthly supplement in respect of rent to assist an eligible person who is unable to provide for his or her accommodation costs from his or her own resources and who does not have accommodation available from any other source.
A significant number of people have come to rely on rent supplements on a long-term basis over the years. In July 2004, the Government announced a new initiative to meet the long-term housing needs of rent supplement recipients. The new system will see local authorities assume responsibility for meeting long-term housing assistance needs, including the needs of those people on rent supplements for 18 months or longer. These needs will be met through a range of approaches, including the traditional range of social housing options, the voluntary housing sector and, in particular, a new public private partnership type rental accommodation scheme. A total of €19 million has been transferred from my Department's Vote to the Department of the Environment, Heritage and Local Government Vote this year to help finance this initiative.
The new arrangements are currently being implemented in seven local authorities. My Department and the Health Service Executive are actively assisting the local authorities and the Department of the Environment, Heritage and Local Government in this process. That Department has appointed programme managers to assist the lead authorities with the implementation of the new arrangements. Thereafter, these managers will be available to support other authorities during the implementation period. Regional and local implementation groups in the seven lead authority areas have been established to ensure effective ongoing liaison and co-operation locally between housing authorities, Health Service Executive areas and other agencies.
It is expected that the lead local authorities will transfer the first eligible rent supplement recipients to the rental accommodation scheme in May 2005. The new arrangements will be initiated in all local authority areas by the end of 2005. Almost 30,000 households who have been in receipt of a rent supplement payment for 18 months or more and are likely to be supported under the new rental assistance arrangements in due course.
The aim of the new system is to minimise ongoing dependence on rent supplement. The objective is to progress to a situation where suitable long-term accommodation is available for all who need it and where the rent supplement scheme is not necessary other than for short-term support. This is planned to be achieved within a period of three years from commencement of the new arrangements in each local authority and, in any event, no later than September 2008. Overall, the new rental assistance arrangements represent a major step forward in supporting people with long-term housing needs. All the relevant agencies are co-operating actively to make the system work successfully.
The supplementary welfare allowance rent supplement scheme will continue to provide short-term income support for eligible people who are unable to meet their immediate accommodation needs through their own resources. The role, efficiency and effectiveness of this supplement is being considered in the context of a comprehensive evaluation of the supplementary welfare allowance scheme being carried out by my Department this year as part of its programme of expenditure reviews.