Receipt of rent allowance, or mortgage supplement, within the supplementary welfare scheme can have an adverse effect on replacement rates. In this regard it may be noted that the purpose of the rent supplement scheme is, inter alia, to provide short-term support to eligible people living in private rented accommodation. Long-term accommodation support is provided through the rental accommodation scheme. It is accepted that progress in relation to the scheme was initially slower than expected. However the pace of delivery has improved significantly. This will have beneficial effect on work incentives as the rental accommodation scheme is neutral from a replacement rate perspective. It should be noted that just 15% of the live register cases analysed in July were in receipt either rent allowance or mortgage interest relief.

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