Joan Burton (Dublin West, Labour)

The Government has provided €436 million for rent supplement in 2012. Total expenditure on the scheme over the past five years from 2007 to 2011 was €2.36 billion. At present, approximately 92,000 persons are in receipt of rent supplement, of whom approximately 37,000 are single persons. The remaining 55,000 clients are couples, couples with children and single-parent households.

New maximum rent payments reduced from 1 January 2012 based on a review of the most up-to-date market data available. The emphasis of the rent review was to ensure value for money for tenants and taxpayers while ensuring people on rent supplement are not priced out of the market for private rented accommodation. The revised limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Approximately 25,000 rent supplement claims have been awarded in 2012, of which 3,700 were awarded within the last month, indicating that accommodation can be secured within the new limits.

When rents are in excess of the limit, clients are being asked to contact the 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. Statistics on the numbers who have secured alternative accommodation are not available. Officials administering the scheme advise that customers are securing alternative accommodation within their locality. Any customers who have specific issues with regard to relocating should discuss these issues with departmental officials, who continue to provide support and advice to customers in addressing their accommodation and other needs. There will be no incidence of homelessness due to these changes.

Additional information not given on floor of the House.

Rent supplement is specifically for the benefit of the tenants to assist them with their accommodation needs. The Department does not intend negotiating directly with landlords to reduce rents on behalf of a tenant.

I have recently introduced powers of inquiry for appropriate staff to request formally and oblige landlords to provide information in respect of their rent supplement tenants, principally to verify the agreed rent and existence of the tenancy. This measure will improve both the governance and oversight arrangements in place and complement existing compliance arrangements which the Department has in place with the Office of the Revenue Commissioners.

See this speech in context