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Departmental Schemes.

Dáil Éireann Debate, Thursday - 14 December 2006

Thursday, 14 December 2006

Ceisteanna (57, 58, 59)

Seán Ryan

Ceist:

27 Mr. S. Ryan asked the Minister for Social and Family Affairs his proposals for a review of the rent supplement scheme, particularly in view of criticism from the Comptroller and Auditor General of the cost of the scheme; and if he will make a statement on the matter. [43131/06]

Amharc ar fhreagra

Joan Burton

Ceist:

46 Ms Burton asked the Minister for Social and Family Affairs his views on the review of the supplementary welfare allowance scheme carried out under the Government’s expenditure review initiative; and if he will make a statement on the matter. [43118/06]

Amharc ar fhreagra

Joe Sherlock

Ceist:

85 Mr. Sherlock asked the Minister for Social and Family Affairs the progress made to date with regard to consideration by his Department of a new mortgage support plan; when he expects the consultation period to be complete; if the scheme will be directed specifically towards persons currently priced out of the property market; and if he will make a statement on the matter. [43130/06]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 27, 46 and 85 together.

The review of the supplementary welfare allowance (SWA) scheme was carried out as part of the Government's Expenditure Review Initiative series of Programme Evaluation reviews. Given the extensive and complex nature of the scheme, the review was undertaken in two phases. A report was published at the end of the first phase in December 2004. That report gave a broad appraisal of the scheme and identified issues for particular consideration in the second phase which commenced in February 2005.

This second phase of the Review, recently published, on 29th November, considered the issues raised in Phase I of the report and examined the validity of the objectives and the efficiency and effectiveness of all elements of the scheme, including rent supplement. The review also provided a series of recommendations in relation to the future of the scheme.

Overall the review concluded that the scheme has, over the years, met its objective of guaranteeing that every person in the State has a minimum level of income sufficient to meet their basic day to day needs. The main recommendations arising include –

That ultimately, social assistance schemes should be integrated into a unified system of income support;

That payment of basic SWA payments should be part of the Department's (DSFA) remit;

That all matters relating to long-term housing needs should be dealt with by local authorities;

That short-term income support for housing needs should be catered for by DSFA;

that exceptional/urgent needs payments should be rationalised;

that the remaining elements of SWA should become part of a system which would deliver irradiate, flexible circumstances. This service would be decided by the Community Welfare Service in co-operation with the other relevant agencies.

In relation to mortgage supports study has been commissioned from Goodbody Economic Consultants to examine the potential of supplementing home ownership specifically among the client base that comes within the rent supplementation arrangements. The study is aimed at identifying possible viable alternative approaches to meet the housing needs of long-term rent supplement recipients. People in this category are primarily dependent on social welfare or health service executive payments and would not be in position generally to purchase private property at going market rates. The work is nearing completion and I understand that the draft report is currently being finalised.

The Value for Money examination undertaken by the Comptroller and Auditor General (C&AG) looked specifically at the rent supplement scheme during the period 2000 to 2005. One of the main issues raised by the C&AG relates to the substantial increase in expenditure on rent supplement over the period of review. As the report notes, it increased from €151m in 2000 to almost €370m in 2005. In the same period, recipient numbers rose from 42,700 to just over 60,000. The report focuses in particular on the increase in the level of rent supplements paid during this period as a contributory factor giving rise to the increase in expenditure. Other contributing factors include increases in the number of recipients and changes in household composition.

During the period under review my Department took measures to address increases in expenditure. For example in December 2002 limits were set by regulation on the amount of rent in respect of which rent supplements are paid. Rent supplement are not paid where rents exceed the maximum levels set other than in exceptional circumstances. The limits were again reviewed in December 2003 and June 2005 and a further review is due to be completed by the end of this month.

A conclusion arising from the C&AG report, is that rent supplementation under the supplementary welfare allowance scheme has, over the years, developed beyond the original objective of providing short-term assistance with accommodation. A significant number of people have now come to rely on rent supplementation for extended periods, including people on local authority housing lists. For this reason, the scheme has to be viewed in the context of overall housing policy, particularly in the case of long-term claimants.

In response to this situation, the Government has introduced new rental assistance arrangements including the rental accommodation scheme (RAS) giving local authorities specific responsibility for meeting the longer-term housing needs of people receiving rent supplement for 18 months or more, on a phased implementation basis. When fully operational, local authorities will meet the housing needs of these individuals 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.

The Department of Environment, Heritage and Local Government has indicated that at the end of November 2006 almost 2,600 tenants have been accommodated under the Rental Accommodation Scheme and a further 1,900 persons accommodated in Social Housing. It is projected that by the end of 2006, between 4,500 and 5,000 tenants will have transferred from rent supplement to accommodation provided by local authorities either through the RAS or some other type of social housing, rising to 10,000 by the end of 2007.

These rental assistance arrangements were endorsed by the working group which carried out the review of the SWA scheme. Overall I am satisfied that the current approach in relation to those in receipt of rent supplement with a long-term housing need is the correct one and that my Department will be vigorously pursuing the implementation of the new arrangements.

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