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Rental Sector

Dáil Éireann Debate, Thursday - 23 June 2022

Thursday, 23 June 2022

Ceisteanna (64)

Mick Barry

Ceist:

64. Deputy Mick Barry asked the Minister for Housing, Local Government and Heritage the amount spent on housing assistance payment and other subsidies to those renting in the private sector; if a cost benefit analysis of HAP in relation to investment in direct built social housing has been made; and if he will make a statement on the matter. [33192/22]

Amharc ar fhreagra

Freagraí scríofa

The Housing Assistance Payment (HAP) and the Rental Accommodation Scheme (RAS) are forms of social housing support, provided by my Department, for people who have a long-term housing need. 

In order for a household to qualify for HAP, they must first be assessed as eligible for social housing support by their local authority. Any household assessed as eligible for social housing is immediately eligible for HAP and those households must source their own accommodation in the private rental sector.

RAS has been an important contributor to social housing supply since its introduction in 2005 and has placed responsibility on local authorities to meet the accommodation needs of people in receipt of Rent Supplement for 18 months or longer, and who are assessed as having a long-term housing need.  RAS has provided a more structured, accommodation-based approach to the use of the private rented sector to meet long-term housing need, thereby eliminating dependence on temporary income support payments through Rent Supplement. The scheme is delivered by local authorities who source accommodation from both the private market and Approved Housing Bodies. 

Responsibility for the Rent Supplement Scheme falls within the remit of my colleague, the Minister for Social Protection.

Exchequer funding on HAP and RAS for 2021, is set out in the following table:

Year

HAP

RAS

 

€m.

€m.

2021

541.7

122.0

My Department continually monitors the implementation of policies and objectives in relation to social housing, as well as the costs associated with implementation, and works to ensure the best value for money for the level of resources available, taking account of the level of housing needs to be met. 

This is reflected in my Department’s regular participation in Spending Reviews led by the Department of Public Expenditure and Reform, which in recent years have examined expenditure across a range of housing measures.  These reviews demonstrate that, while in certain specific urban/rural scenarios it is arguable that one type of housing delivery may be more costly than another, in overall terms value for money is being achieved.

Under the Housing for All strategy, the Government plans to increase the supply of housing to an average of 33,000 homes per year over the next decade, including an average of 10,000 new build social homes.   As new build supply of social housing ramps up, there will be reducing reliance on the HAP and RAS schemes.

Question No. 65 answered with Question No. 43.
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