Oireachtas Joint and Select Committees

Wednesday, 15 May 2013

Joint Oireachtas Committee on Education and Social Protection

Rent Supplement Scheme: Discussion with Department of Social Protection

1:25 pm

Ms Helen Faughnan:

We appreciate that it is an issue but our hands are tied if the tenant does not come forward to let us know. Under a recent Act, our social welfare officers have powers to ensure that if they are doing a check on a landlord, that landlord must declare actual rents. It is an offence if they are not declaring the right amount. These powers are available to our special investigation unit and our staff to enable them to improve that situation.

Senator Moloney mentioned the recoupment of deposits. We are aware of the deposits that are being paid. To put it into context, approximately 5,600 deposits were paid in 2012. From talking to NGOs, these are a key support, particularly to help people avoid homelessness. It helps people who need accommodation but do not have the resources, particularly those on social welfare or HSE payments, to save the money for a deposit. In 2012, approximately 48,700 rent supplement claims were awarded so the amount of deposits issued is a very small percentage at approximately 11%. The corollary of that is that 43,100 new awards did not receive a deposit. I accept the Senator's query about whether this is a circular process whereby a deposit must be made available. We agree that there are better uses for this money and welcome the scheme that the Minister of State with responsibility for housing and planning is looking at putting in place. We will be looking at the rental deposits scheme when this protection scheme comes into play.

The community welfare service and the supplementary welfare scheme transferred back into our Department with full effect from October 2011 and refunds are recorded under the general heading, supplementary welfare allowance scheme. In 2011, the amount recorded as refunded under the scheme was approximately €1.1 million and last year, it was more than €854,000. That is not broken down in terms of a possible recoupment under BASI payments, rent supplement or ENP deposits but we are going to look at that to try to ring-fence it in order that we are able to identify the different recoupment methods with our accounts branch.

With regard to processing times, because Senator Moloney's constituency fits into one of the divisions for which I have responsibility, I am concerned if rent supplement claims are taking five months to process. I might have a chat with her afterwards.

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