Rent Supplement Scheme Application Numbers

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Ceisteanna (887)

Bernard Durkan

Ceist:

887. Deputy Bernard J. Durkan asked the Minister for Social Protection if she will review the impact of the sharp reduction in the rent support in areas in which local demand for rent accommodation is high and local authority housing application waiting lists are excessive in view of the lack of a proper public housing construction programme over the last ten years; if she recognises the need to vary rent support to meet the requirements of applicants for rent support on local authority housing lists; if she will consider local regional loans for the determination of maximum rents as opposed to the country-wide structures currently in existence which are perfectly adequate in areas with available rent accommodation but cause unnecessary hardship to applicants in areas affected by a lack of adequate rented accommodation; and if she will make a statement on the matter. [39306/12]

Freagraí scríofa

Minister for Social Protection

The purpose of the rent supplement scheme 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 overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently over 90,000 rent supplement recipients for which the Government has provided €436 million for 2012.

It is my intention to transfer responsibility for the provision of rental assistance to persons with a long term housing need from my Department, currently provided through rent supplement, to housing authorities. This will achieve a key Government commitment of removing barriers to employment and at the same time returning rent supplement to its original purpose of a short-term income support.

A multi-agency steering group has been established to develop proposals to give effect to this transfer. The group is chaired by the Department of the Environment, Community and Local Government and consists of representatives from the Departments of Social Protection; Public Expenditure and Reform; Office of the Revenue Commissioners; the County and City Managers Association, and the Housing Agency.

Policy in relation to social housing provision is a matter for my colleague the Minister for the Environment, Community and Local Government.

For all counties, major urban population centres were tested as part of the rents limit review. The maximum rent limits are based on an analysis of rental rates rather than house prices or regional loan values. Approximately 33,500 rent supplement claims have been awarded in 2012, representing over 37% of total claims in payment, indicating that accommodation can be secured within the current rent limits.

Department officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met; there will be no incidence of homelessness due to these changes.

The Department will continue to monitor rent levels throughout the country but at this point I have no plans to revise the existing rent limits.