Martin Cullen (Waterford, Fianna Fail)

Rent supplement is administered on my behalf by the Health Service Executive as part of the supplementary welfare allowance scheme. Rent supplement is subject to a limit on the amount of rent that an applicant for rent supplement may incur. These rent limits are set at levels that enable the different categories of eligible tenant households to secure and retain basic suitable rented accommodation, having regard to the different rental market conditions that prevail in various parts of the State. Household size is taken into account and the objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation, having regard to the size of the household.

Setting maximum rent limits higher than are justified by the open market would have a distorting effect on the rental market, as we learned in the past, leading to a more general rise in rent levels. This, in turn, would worsen the affordability of rental accommodation unnecessarily, with a particular negative impact for those tenants on lower incomes, including people in low-wage employment.

Notwithstanding these limits, under existing arrangements, the Health Service Executive may, in certain circumstances, exceed the rent levels. This discretionary power ensures that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness.

In January 2007, a review of the maximum levels of rent which a person may incur and still be eligible to receive a rent supplement was completed. The purpose of the review was to inform the process of setting new limits, applicable from January 2007 until 30 June 2008. The review included consultation with the HSE, the Department of the Environment, Heritage and Local Government, the Central Statistics Office, the Private Residential Tenancies Board and voluntary agencies working in this area. This process ensured that the new rent limits reflect realistic market conditions throughout the country and that they will continue to enable the different categories of eligible tenant households to secure and retain suitable rented accommodation to meet their respective needs.

Additional information not given in the floor of the House.

Arising from the review, rent limits were adjusted upwards, from January 2007, for a number of household types in 14 counties.

There are currently over 59,000 rent supplements in payment, of which some 24,000 have been awarded since the current rent limits were set in January 2007. This demonstrates that rented accommodation is available within the current rent limits. I intend to have all limits reviewed next year with a view to implementing any revision found to be necessary from 1 July 2008.

The fact that there are over 59,000 tenants receiving rent supplement suggests that payment in arrears is not causing difficulty. Given the scale of cost involved and the Government's other social provision priorities, I have no plans to change the current arrangement.

It is estimated that the cost to the Exchequer of paying rent supplement in advance would be in the region of €33 million. Changing the payment arrangements would have to be considered within a budgetary context and in the light of resources available to me for improvements in social welfare generally.

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