Joan Burton (Dublin West, Labour)

Between 2005 and 2010, rent supplement expenditure increased from €369 million to €516 million. The number of persons claiming the allowance increased from almost 60,200 in 2005 to more than 96,100 as at 18 November 2011, a 60% increase. The Deputy will appreciate that I cannot discuss measures under consideration for inclusion in budget 2012. However, in framing the budget proposals, my priority will be to continue to make progress on delivering on the commitments in the programme for Government and to deliver good value for money for the taxpayer.

My focus in regard to the rent supplement scheme will be to return the scheme to its original intentions of a short-term income support payment for people who suddenly lose their jobs or who are renting a house or flat with the local authorities taking over responsibility for meeting the accommodation needs of those in receipt of rent supplement on a long-term basis.

Two main initiatives are being pursued by the Department to transfer long-term rent supplement recipients into housing solutions supported by local authorities. One is the rental accommodation scheme, RAS, which was introduced in 2004, and gives local authorities specific responsibility for meeting the longer term housing needs of people receiving rent supplement for 18 months or more.

The second is the new housing policy framework statement announced by the Minister for the Environment, Community and Local Government and the former Minister of State with responsibility for housing and planning on 16 June 2011, which sets out the principles to underpin the development of housing policy into the medium term. A multi-agency steering group has been established by the Department of Environment, Community and Local Government to give effect to this initiative and this group is developing proposals and operational protocols for the transfer of responsibility from the my Department to housing authorities of persons who have long-term housing requirements. The transfer of tenants from rent supplement to local authorities will help achieve a key Government commitment of removing barriers to employment and returning rent supplement to its original intention of a short–term income support payment.

See this speech in context