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Thursday, 8 March 2012

Ceisteanna (115, 116)

Willie Penrose

Ceist:

116 Deputy Willie Penrose asked the Minister for Social Protection the level of income that a couple and a child can have in order to qualify for rent supplement and in particular where a person and his or her partner with one child have income of €450, and whereby their rent is €135 per week; and if she will make a statement on the matter. [13438/12]

Amharc ar fhreagra

Willie Penrose

Ceist:

117 Deputy Willie Penrose asked the Minister for Social Protection when examining a claim for supplementary welfare allowance, and more particularly for rent supplement, if cognisance is taken of weekly outgoings, and where persons who have loans, if that can be considered as part of the assessment where such persons make an application for rent supplement; and if she will make a statement on the matter. [13439/12]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 116 and 117 together.

The purpose of Rent Supplement is to provide short term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. Rent supplement is not payable where a person or their spouse or partner is in full-time employment, that is, for 30 hours or more a week. However, provision was made in 2007 whereby a person in receipt of rent supplement, who is accepted as eligible for accommodation under the rental accommodation scheme, may return to full-time work, subject to a means test, and still be considered for a rent supplement payment.

Rent supplement is normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance (SWA) appropriate to their family circumstances less a minimum contribution which recipients are required to pay from their own resources. The weekly minimum contribution is €30 for a single adult household and €35 for coupled households. Many recipients pay more than this amount because recipients are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs.

Where a person has additional income in excess of the standard weekly rate of SWA, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This means test ensures that those returning to part-time work (up to 30 hours a week or full-time for those accepted as having a housing need under RAS) or participating in training schemes are better off as a result of taking up such an opportunity. Gross income less PRSI and reasonable travel expenses are taken into account for the means test. Other necessary expenses may be allowed in the case of self employment. However, the assessment does not allow for deductions in respect of repayments on loans.

There are many factors which determine rent supplement entitlement, including the number of hours worked, the level of earned income and any social welfare payments or whether the rent payable is within prescribed limits. As such, based on the example outlined by the Deputy, it is not possible to say for certain if the household would qualify for a rent supplement payment.

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