Dáil debates

Wednesday, 16 April 2014

Other Questions

Rent Supplement Scheme Administration

10:30 am

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

I propose to take Questions Nos. 8 and 10 together.

There are approximately 78,000 rent supplement recipients, at a cost of €344 million for 2014. A top-up payment occurs where the applicant declares a rent lower than that actually being charged by the landlord. No evidence has been presented to the Department showing widespread incidence of illegal top-ups, although I am aware of reports of the problem. All such offences should be reported to the Department, which has specific legislative powers to deal with them.

To qualify for rent supplement, the tenant, landlord or landlord's agent must complete the rent supplement application and declare that the information provided is correct and accurate. The application form clearly states that making a false statement or withholding information may lead to prosecution. In June 2012, in order to improve the governance arrangements, the Department introduced powers of inquiry for staff to request formally and oblige landlords to provide information in respect of rent supplement tenants.

Prospective tenants, including those seeking to access rent supplement, are finding it increasingly difficult, particularly in Dublin, to secure appropriate accommodation due to the reduced availability of rental properties. As I have indicated, it is very much a supply issue. Despite pressures on the social protection budget, the rent limits were increased in line with market rents in some areas, including Dublin and north Kildare, in June 2013. Further increasing the limits at this time will not resolve the supply issue and would result in additional increases in rental costs for all persons renting, including working people making payments out of their wages. I have no plans to revise the current limits or the maximum rent review process at this time.

In view of the ongoing difficulties, the Dublin local authorities are engaging with the Department in developing an inter-agency intervention system to identify vulnerable families who are in receipt of rent supplement and at risk of becoming homeless due to the imminent loss of their tenancy. These cases will be assessed on an individual basis having regard to individual circumstances, and families requiring additional support will receive the necessary assistance, financial or otherwise.

The fact that approximately 78,000 people are in receipt of rent supplement shows that a significant number of landlords are accommodating and negotiating with applicants of the scheme. I am aware of the practice by some leading property websites of asking potential landlords whether they will accept rent supplement tenancies.

That practice is extremely unfair and it is leading many landlords more or less to tick the relevant box on online forms and indicate they will not accept rent supplement. We are asking a number of agencies to reconsider their practices in this regard, particularly as they involve a very unfair attitude abroad towards people who are in receipt of rent supplement.

Additional information not given on the floor of the House

The Department is aware that some leading property websites ask potential landlords to indicate whether they will accept rent supplement tenancies. It is the Department’s expressed position that this practice should cease and the matter has been raised with the leading websites. However, it is open to any person who has been refused a private tenancy and who feels discriminated against on the basis of his or her gender, civil status, family status, sexual orientation, religion, age, disability, race or membership of the Traveller community to refer a discrimination complaint to the Equality Tribunal under the Equal Status Acts.

I assure the Deputies that departmental officials administering rent supplement have considerable experience in dealing with customers of the scheme and will continue to make every effort to ensure their accommodation needs are met. While the majority of persons are in a position to engage successfully and negotiate with landlords, any customers experiencing difficulties should continue to engage with departmental officials.

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