John Perry (Sligo-North Leitrim, Fine Gael)

I am taking this Topical Issue matter on behalf of the Minister for Social Protection, Deputy Joan Burton, who conveys her apologies to the Deputies for being unable to respond in person. 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, not to act as an alternative to the other social housing schemes operated by the Exchequer.

There are approximately 93,000 persons in receipt of rent supplement, for which the Government has provided a sum of €436 million for 2012. New maximum rent limits were introduced from 1 January 2012, following analysis of the most up-to-date market data. The emphasis of the rent limit review was to ensure maximum value for money for tenants and the taxpayer, while also ensuring that people on rent supplement are not priced out of the market for private rented accommodation. In the case of each county, all major urban population centres were tested as part of the review to ensure rent supplement applicants would be able to access temporary housing arrangements while seeking employment opportunities.

The revised rent limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Latest figures show that approximately 23,000 claims have been awarded in 2012, indicating that it is possible to secure accommodation within the revised limits. The Department will continue to monitor rent levels throughout the country. Rent supplement is not generally paid where the rent charged for the accommodation is above the relevant maximum rent limit. However, departmental officials have flexibility to make payments above these limits where there are special housing needs related to exceptional circumstances. This would apply, for example, in the case of a person with a disability living in specially-adapted accommodation or homeless persons whose housing needs cannot be met within the standard terms of the rent supplement scheme.

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. Departmental officials dealing with rent supplement tenants will continue to ensure their accommodation needs are met. I assure the Deputies that there will no incidence of homelessness due to these changes.

See this speech in context