Oireachtas Joint and Select Committees

Tuesday, 17 June 2014

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Current Housing Demand: Discussion (Resumed)

3:05 pm

Ms Helen Faughnan:

I can assure the Senator that the rent limit review will be completed in time to feed into the budgetary process in October. Following Government consideration, it will be implemented.

We are currently spending €344 million on rent supplement. There is a balancing act in terms of value for money for the taxpayer given we are currently funding approximately 33% of the private rental sector. It is important that we are not distorting the market too much with that level of impact. That is one cautionary point.

In terms of the benefits to the tenant of moving to HAP, there is sometimes a perception among people on the live register in particular that they will lose rent supplement when they go into full-time employment. Due to the nature of the differential rent scheme that will be operated as part of HAP, this will support people moving into employment. As their earnings increase, their differential rent will be adjusted but they will not lose their housing support.

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