Ms Margaret McCormick:

One third of all tenancies are covered under the HAP scheme and the rent supplement scheme and, therefore, a great number of people are in receipt of those payments. There are big issues around the HAP scheme and the rent supplement scheme. First, it is not market rent. HAP is paid in arrears rather than in advance and that can cause huge difficulties because the market takes rent in advance. There is no communication between those administering the HAP scheme and a landlord. If the payments stop a landlord gets no details of that, so there is a communications issue there. A person cannot give a landlord confirmation that they are in receipt of HAP, rather they say that they will apply for it. Those issues with the scheme are difficult and fraught. The system is not fit for purpose.

Rent supplement is paid directly to the tenant unless a tenant gives consent for it to be paid to a landlord. If it is not paid onward, difficulties arise for the person living in the accommodation because they will go into arrears and the money is used to cover different expenses. The Government subsidies are not fit for purpose.