Terence Flanagan (Dublin North East, Fine Gael)

I welcome the opportunity to speak on the Social Welfare Bill. The rent supplement is the only housing support available to many people on low incomes. More than 60,000 people in the private rented sector depend on rent supplement. They are in a very disadvantaged position when looking for accommodation because landlords blatantly discriminate against those receiving rent supplement and will not accept them. Often this forces tenants into the worst category of accommodation. Threshold's access housing unit is carrying out a survey of landlords on their attitude to rent supplement. Preliminary findings indicate that the biggest reason landlords will not accept rent supplement is because it is paid in arrears rather than in advance, which is the norm for the rented sector. Individuals and families in receipt of rent supplement are disadvantaged because they cannot pay their deposit and first month's rent upfront. Landlords are more likely to accept tenants who can pay such moneys in advance, which means that those who rely on rent supplement are at a complete disadvantage. Landlords do not like to accept rent supplement for two other significant reasons — the insufficient level of rent supplement payments and the unacceptable delays in processing applications. The current system is not fair to landlords or tenants, both of whom should be treated fairly. Every effort should be made to assist those who face poverty. People have to wait up to six weeks to receive rent supplement payments under the current system. Some tenants are refused the supplement when their applications are eventually processed, which leaves them owing their landlords six weeks rent.

Tenants in the private rented sector are facing higher rents. The latest daft.ie report shows that rents increased by an average of 9% between June 2006 and July this year. The increase in Dublin alone was between 8% and 12%. According to the most recent data, the market rent per month for a one-bed apartment in Dublin 1 and Dublin 2 is €1,122, or 81% of the minimum wage and 45% of the average industrial wage. Tenants are finding it increasingly difficult to afford rent payments. Rent caps have not changed to reflect soaring rents in Dublin, particularly in Dublin 1, Dublin 2 and Dublin 13. The current rent supplement system is insufficient because it does not respond to local rental changes or reflect the changes in the rental market.

It is accepted that the poor level of participation in the family income supplement scheme is a long-standing problem. Research undertaken by the Economic and Social Research Institute suggests that less than 33% of potentially eligible claimants receive family income supplement. Given that the supplement was introduced in 1984, it is stunning that a Minister can come to the Dáil 22 years later to tell Deputies that its take-up remains a fraction of its potential. Some 40,000 families are not receiving the supplement, even though they are entitled to €5,000 or more per annum. Many of them have to rely on dig-outs from family and friends, which should not be the case. Such persons should be made aware of their rights and entitlements. The State saves an enormous amount of money as a result of its reluctance to take a proactive approach to this matter. We need to look after the people I have mentioned. I could say much more on this matter, but I will allow my colleague to speak.

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