The purpose of rent supplement is to provide short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The scheme is intended as a temporary income support payment and is not designed to be a medium to long term housing support or a permanent solution to a person's housing needs.
Current legislation provides for the making of a rent supplement payment to another person (e.g. a relative, a landlord or landlord's agent) on behalf of the recipient, at the tenant's request and is subject to the consent of the HSE. Approximately 20% of rent supplement payments are currently paid to a person other than the tenant.
Under the current arrangements, even with direct payment, landlords still have to collect the tenant contribution towards their rent (a minimum of €104 per month). The amount of rent supplement payable depends on the tenant's income; in some cases tenants pay only the minimum contribution while for others the tenant makes an additional contribution to their rent based on their financial circumstances. For example, where a person is in part-time income and receives just 10% of his or her rent directly from the State, the landlord would receive the 10% directly whilst still having to collect the 90% from the tenant.
The efficiency of the scheme would be significantly affected if this arrangement were to be changed for all cases, for example CWO's would potentially have to create a formal relationship with some 96,500 additional clients, the landlords. This would involve greater complexity and significant resources to deal with a new set of third parties. In particular, it would also result in CWOs being drawn into disputes between landlords and tenants.
Where a landlord has a grievance in relation to the non-payment of rent by a tenant, s/he may apply to the Private Residential Tenancies Board to have the dispute resolved through the Board's dispute resolution process. It is also open to the landlord to bring to the attention of the HSE any instance where a tenant is receiving rent supplement but is not paying their rent. Where a Community Welfare Officer becomes aware that a person receiving rent supplement is not using that supplement for the purpose for which it was intended the matter is fully investigated.
The purpose of the departmental circular issued to Community Welfare Services in August 2010 was to remind HSE staff of the payment options under the supplementary welfare allowance scheme, including payments directly to landlords. I agree that making the payment to a person other than the tenant in certain circumstances is appropriate and in the best interests of all parties. However, I do not consider it appropriate to remove the right of the tenant to receive this payment by making it payable only to the landlord and have no plans to amend legislation to provide for this.
The current arrangements provide tenants with flexibility in terms of location, the freedom to move to a different location whilst allowing recipients time to seek alternative long-term housing solution provided by their local authority. The tailoring of additional payments, such as rent supplement, to meet the specific needs of individuals and making the payment direct to the tenant is regarded as an effective way of helping individuals realise their potential and take individual responsibility.
