Joan Burton (Dublin West, Labour)

I propose to take Questions Nos. 113 and 112 together.

There are currently approximately 93,800 persons in receipt of rent supplement, for which the Government has provided €436 million for 2012. New maximum rent limits were introduced from 1 January 2012, following analysis of the most up-to-date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved, while at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation. The revised rent limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Approximately 21,300 claims have been awarded in 2012, indicating that it is possible to secure accommodation within the revised limits. There were 96,800 persons in receipt of rent supplement at the end of 2011.

Where rents are in excess of the limit, customers are being asked to contact their landlord and renegotiate the rent. Where landlords do not agree to reduce the rent within the limits, staff will discuss the options open to the tenant, including seeking alternative accommodation. Information on the numbers who have secured alternative accommodation is not available. The Department does not intend to negotiate directly with landlords to reduce rents on behalf of a tenant. Department officials dealing with rent supplement tenants will continue to ensure their accommodation needs are met and that there will be no incidence of homelessness due to these changes.

See this speech in context