Joan Burton (Dublin West, Labour)

I propose to take Questions Nos. 1 and 5 together.

Rent supplement provides short-term support for eligible persons living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. Since 2005, rent supplement expenditure has increased from €369 million to a provisional outturn of €503 million in 2011. The number of persons claiming the allowance went from almost 60,200 in 2005 to more than 96,800 at the end of 2011, an increase of 61%.

As my Department funds approximately 40% of the private rented sector, it is essential that State supports for rents are kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others such as low-paid workers and students. New maximum rent limits came into force on 1 January 2012 which are in line with the most up-to-date market data available. The emphasis of the rent limit review was to ensure maximum value for money for tenants and the taxpayer, while also ensuring persons in receipt of rent supplement are not priced out of the market for private rented accommodation. It is expected that the new limits will achieve €22 million in savings this year.

All new rent supplement applications are subject to these limits. As existing claims come up for review, usually every six months, or when an existing lease expires, they will be reassessed using the new limits. These reviews are being carried out by former community welfare officers who joined my Department on 1 October 2011 and are now departmental officials. Where a claim is under review and the rent is above the new maximum limit, the customer is asked to contact the landlord to renegotiate the rent. Where a landlord does not agree to reduce the rent to the new rates, departmental officials will discuss the options open to the tenant up to and including seeking alternative accommodation. Departmental guidance to the officers administering rent supplement states that where negotiation with the landlord fails, the supplement may continue to be paid for a period of up to 13 weeks at the higher rate. However, once the lease has expired, the tenant will be expected to find suitable accommodation at below the new limits.

The provision of social housing is a matter for my colleague, the Minister for the Environment, Community and Local Government, Deputy Phil Hogan. I am advised that his Department has agreed a target of delivering 2,000 units that have been identified by the National Asset Management Agency as potentially suitable for social housing use. The provision of social housing is a matter for my colleague, the Minister for the Environment, Community and Local Government, Deputy Hogan. I am advised that Department has agreed to the delivery of 2,000 units which have been identified by NAMA as potentially suitable for social housing use.

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