I propose to take Questions Nos. 1557, 1558 and 1573 together.
The rent supplement scheme plays a vital role in housing families and individuals, with the scheme currently supporting approximately 41,200 tenants for which the Government has provided €253 million for in 2017.
Rent supplement is a demand led scheme. Details of rent supplement recipients and expenditure under the scheme for the period from 2013 to date are provided in the attached tabular statement. Rent supplement’s outturn forecast is calculated based on its expected level of activity taking into account transfers to, and the impact of, the housing assistance payment scheme (HAP) for the period under review. Rent supplement forecast outturn for 2018 will be determined as part of the budgetary process in consultation with the Department of Housing, Planning, Community and Local Government which has responsibility for HAP and other social housing solutions.
Rent supplement customer numbers have declined during the period commencing December 2013 (c.79,800) to June, 2017 (c. 41,200). The strategic initiative of returning rent supplement to its original purpose, that of a short-term income support, facilitated by the introduction of the HAP scheme has been the main driver in rent supplement’s base decline. Other contributory factors include the continuing improvement in the economy leading to fewer people seeking support due to retaining and securing long-term employment allied with more people exiting rent supplement through activation and securing job opportunities. The strategic goal is to transfer all long-term tenancies from rent supplement to HAP by 2020.
There are currently over 24,700 active HAP tenancy arrangements of which approximately 7,550 are direct transfers from rent supplement. Analysis of recipient numbers transferring to HAP as at December 2015 to end June 2017 is provided in the table. In addition to the ongoing transfer of long-term rent supplement recipients to HAP, the majority of new applicants seeking State support towards their rent are being supported by the local authorities under HAP rather than rent supplement.
The rental accommodation scheme (RAS) also has continued its operations in the transfer of rent supplement customers. At the end of May 2017, local authorities had transferred a cumulative total of 58,740 households from rent supplement to RAS and other social housing supports.
I trust this clarifies matters for the Deputies.
Rent Supplement: Recipient Numbers & Expenditure: 2013 to Present
Year
|
Recipients
|
% Change
|
Cost €000
|
% Change
|
2013
|
79,788
|
-9.00%
|
372,909
|
-12%
|
2014
|
71,533
|
-10.30%
|
338,208
|
-9.30%
|
2015
|
61,247
|
-14.30%
|
311,059
|
-8%
|
2016
|
48,041
|
-21.60%
|
275,296
|
-11.50%
|
2017
|
41,240
|
1
|
253,000 2
|
|
As at end June 2017
Forecast outturn for 2017
Rent Supplement: Recipient Numbers transferred to HAP
YEAR
|
Transferred from RS to HAP
|
2014
|
N/A
|
2015
|
2,100
|
2016
|
3,943
|
End June 2017
|
2,071
|