Dáil Éireann Debate, Wednesday - 6 December 2017
261. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government the estimated daily cost of HAP and RAS payments in 2018; the equivalent daily investment being put into building permanent homes; and if he will make a statement on the matter. [52155/17]
Amharc ar fhreagra262. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government if a cost-benefit analysis has been undertaken to compare the cost of HAP, RAS and rent supplement in 2018 and the cost of building permanent homes; the rationale for continuing high spending in the private rental sector; and if he will make a statement on the matter. [52156/17]
Amharc ar fhreagraI propose to take Questions Nos. 261 and 262 together.
There are currently some 50,000 households having their housing needs met via HAP and RAS, and some 40,000 landlords or agents currently in receipt of HAP and RAS payments. These schemes provide social housing support for households who require long-term assistance with their housing needs in the private rented sector, by allowing them to increase their income without the risk of losing their housing support. Under Rent Supplement, these households would lose their housing support payment, therefore putting their housing security at risk.
Rent Supplement, which falls within the remit of my colleague, the Minister for Employment Affairs and Social Protection, continues to be available to those who are already in the private rented sector but who, because of a short term change in their circumstances, such as loss of income through unemployment, require a short-term income support to pay their rent. These applicants would not generally require an assessment of housing need and the expectation would be that a return to employment would obviate the need for long-term support. Thus Rent Supplement would return to being a short-term income support, as originally intended.
My Department does not hold a per day breakdown of the costs of HAP and RAS due to variations in costs related to a variety of factors including contractual agreements, household size, and locations. However, a detailed breakdown of the annual cost of each scheme per year for both RAS and HAP is available on my Department's website, which can be accessed at the following link;
http://www.housing.gov.ie/housing/social-housing/social-and-affordble/overall-social-housing-provision
At the end of 2016 local authorities reported that there were 20,306 Rental Accommodation Scheme (RAS) tenancies in place, with a 2016 Exchequer outturn for the scheme of just under €131 million. Exchequer funding of €134.3 million has been allocated to RAS in 2017, which is expected to be expended in full. In summary, the average monthly payment to landlords under RAS, across all areas and all household sizes, was just over €700 in 2016. RAS data for 2017 is not yet available. In relation to HAP, the average monthly payment to landlords nationally at end Q3 2017 was just over €710.
€134.3 million is provided in Budget 2018 to support the cost of the Rental Accommodation Scheme (RAS). Budget 2018 has increased the Exchequer funding for the HAP scheme by €149m to €301 million. This will allow for the continued support of existing HAP households at end 2017, and also enable the additional 17,000 households targeted under Rebuilding Ireland to be supported by HAP in 2018.
As part of Budget 2017, Minister Donohoe announced that a review of day-to-day Government spending would take place in advance of Budget 2018. The 2017 Spending Review is the first in a series of rolling, selective reviews, which will cover the totality of Government spending over a three year period to 2019. These reviews provide an examination of all areas of public expenditure by Government Departments in a process led by the Department of Public Expenditure and Reform. As part of the Spending Review 2017, an analysis of current expenditure on housing supports was carried out by the Irish Government Evaluation and Economic Service (IGEES). A copy of this analysis can be found at the following link:
www.per.gov.ie/wp-content/uploads/Current-Expenditure-on-Housing-Supports.pdf.
Rebuilding Ireland is fundamentally based on blended delivery of social housing and harnessing the best possible housing solutions, while achieving the best value for money within the financial resources available to Government. A range of delivery mechanisms are operating in parallel and while it is recognised that an increased emphasis is now on building units, there are a considerable number of units available nationally for leasing and renting, both long and short term, which satisfy particular demand.
I am satisfied that the resources allocated under Budget 2018 to each of the housing schemes under my remit provide sufficient flexibility to react to market demands.
