Phil Hogan (Carlow-Kilkenny, Fine Gael)

I thank Deputy Ellis for raising this important issue. He knows that for many years rent supplement has been used as a form of housing support for households who are unable to afford accommodation within the private housing market and for whom social housing is not yet available. Rent supplement, however, was designed as a short-term income support and its use as a long-term housing support has distorted both the social and private housing markets and has led to an employment trap for many households, particularly those with families.

Arising out of commitments in the programme for Government to review the operation of the rent supplement scheme, and in doing so attain better value for money, proposals to integrate the systems for providing rent supplement and social housing support are being advanced. The new housing policy statement published by my Department on 16 June 2011, signalled key reforms in housing policy, including the phased transfer of responsibility for meeting the housing needs of long-term rent supplement recipients from the community welfare service to the housing authorities.

The number of households who have been receiving rent supplement in the longer term is a shared concern of several Government colleagues. Together with the Minister for Social Protection, Deputy Burton, the Minister of State, Deputy Penrose has already established a steering group to oversee the development of the project and a number of working groups have been established to address the wide range of complex issues arising. We need to ensure the transfer happens in the right way with issues like deduction of rental contributions at source being critical - but there is general agreement between all that the basic approach is a sound one.

The option being examined is the transfer of responsibilities for households in receipt of rent supplement, but who have an established long-term social housing need, from the Department of Social Protection to housing authorities. Rent supplement would continue to be paid by the Department of Social Protection to certain households. This would include those already in the private rented sector but who, because of a loss of income through unemployment, require a short-term income support to pay their rent. These applicants would not generally require an assessment of need and the expectation would be that a return to employment would obviate the requirement for long-term housing support. Thus, rent supplement would remain a short-term income support, as originally intended.

Subject to the successful conclusion of the work of the steering group, it is the intention to bring proposals to Government later in 2011. A date to begin implementing the new arrangements can then be formally agreed. The date set will allow time for the issues identified, including crucially the issue of deduction of rents at source from relevant welfare payments, to be properly resolved before implementation.

The Croke Park agreement allows for flexibility when community welfare officers from the Department of Health to the Department of Social Protection. There will be no job losses. This is about getting better value from the technology that is available in the Department of Social Protection and to get an understanding of the real requirements of people who are in receipt of rent supplement.

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