Kevin Humphreys (Dublin South East, Labour)

The Minister is trying to reform the rent supplement scheme. Some of the changes made in the budget proved to be problematic for people availing of rent supplement in Dublin South-East and across the country. As part of the budget, new upper limits for the rent supplement scheme were published. They make it extremely difficult for applicants to find suitable accommodation across the country and particularly in Dublin 2 and Dublin 4, where there is strong market demand. The changes will also have a significant impact on those in my constituency who have found suitable accommodation that met the old criteria but which is no longer acceptable as it exceeds the new limits. Exceptional market demand in my constituency means the price of one-bedroom flats ranges from €700 to over €1,000 per month. This is far in excess of the rent supplement limit of €475 for all of Dublin.

The new limit represents a reduction of approximately 10% on the previous threshold and is well below the rental price of even a bed-sit or studio apartment in many areas of my constituency. If these changes are implemented, they will force people in receipt of rent supplement out of certain areas in Dublin, even though they may contain numerous social housing units. People will be driven from the areas in which they grew up and raised their own families and in which many of their loved ones still reside. Others may be forced into illegal arrangements whereby they agree to top up their rent by way of under-the-table payments to their landlords.

Nevertheless, I welcome and accept the necessity of the Government's efforts to reform the rent supplement scheme. It has grown into something far larger and more all-encompassing than was originally planned. I also welcome the moves to place the scheme under the joint control of the Department of the Environment, Community and Local Government and the local authorities, which will allow it to operate in a far more effective manner. Rent supplement should not function as a poverty trap and a disincentive to take up employment.

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