Joan Burton (Dublin West, Labour)

I thank Deputy Pringle for raising this issue. The purpose of rent supplement is to provide short-term income support to eligible tenants 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. The overall aim is to provide short-term assistance and not to act as an alternative to the other social housing schemes operated by the Exchequer. Since 2007, rent supplement spending has increased from €391 million to a provisional outturn of €503 million in 2011. The number of people claiming the allowance increased from just under 60,000 people to over 96,800 at end 2011, a 62% increase.

The Department's staff administering the rent supplement scheme assess each application based on the individual circumstances of the case. The Department must be satisfied that the residence is reasonably suited to the residential and other needs of the claimant. The Department must also be satisfied that the rent payable is reasonable, having regard to the nature, character and location of the residence. Individuals cannot be provided with financial assistance for accommodation that is in excess of their needs. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation, having regard to the size of the household and market conditions. It should also be borne in mind that the Department is responsible for renting approximately 40% of rental properties in the country. If we over pay, we drive up rents for workers on low income and students who pay privately for accommodation. Therefore, there is an issue of balance. However, in determining whether a particular property is reasonably suited to the residential and other needs of the claimant, the question of availability of accommodation is taken into consideration. It is accepted that there may be limited availability of apartments and smaller properties in some rural areas.

It is the Department's intention to return the rent supplement scheme to its original purpose of a short-term income support. The Government has effectively two initiatives to deal with long-term reliance on rent supplement, the rental accommodation scheme, RAS, in operation since 2004, and the new housing policy initiative. Both initiatives give the local authorities specific responsibility for meeting the long-term housing needs of people receiving rent supplement. These initiatives will result in a long-term solution for those with a housing need. I am working closely with my colleagues, the Minister, Deputy Phil Hogan, and the Minister of State at the Department of the Environment, Community and Local Government, Deputy Jan O'Sullivan, to have responsibility for rent supplement transferred to local authorities as these will have a housing department with the detailed knowledge of availability of and cost of accommodation.

One of the cases mentioned by Deputy Pringle concerned an elderly lady. I put it to the Deputy that if we wish to reform the system, that lady should receive long-term accommodation suitable for somebody of her age and physical condition. That is the objective towards which we should work.

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