Dáil debates

Tuesday, 4 December 2007

Priority Questions

Social Welfare Benefits.

3:00 pm

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 59: To ask the Minister for Social and Family Affairs if he will amend the rent supplement scheme in order that the rent supplement is paid in advance rather than arrears and that rent caps accurately reflect the market cost of accommodation; and if he will make a statement on the matter. [32583/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Rent supplement is administered on my behalf by the Health Service Executive as part of the supplementary welfare allowance scheme. Rent supplement is subject to a limit on the amount of rent that an applicant for rent supplement may incur. These rent limits are set at levels that enable the different categories of eligible tenant households to secure and retain basic suitable rented accommodation, having regard to the different rental market conditions that prevail in various parts of the State. Household size is taken into account and 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.

Setting maximum rent limits higher than are justified by the open market would have a distorting effect on the rental market, as we learned in the past, leading to a more general rise in rent levels. This, in turn, would worsen the affordability of rental accommodation unnecessarily, with a particular negative impact for those tenants on lower incomes, including people in low-wage employment.

Notwithstanding these limits, under existing arrangements, the Health Service Executive may, in certain circumstances, exceed the rent levels. This discretionary power ensures that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness.

In January 2007, a review of the maximum levels of rent which a person may incur and still be eligible to receive a rent supplement was completed. The purpose of the review was to inform the process of setting new limits, applicable from January 2007 until 30 June 2008. The review included consultation with the HSE, the Department of the Environment, Heritage and Local Government, the Central Statistics Office, the Private Residential Tenancies Board and voluntary agencies working in this area. This process ensured that the new rent limits reflect realistic market conditions throughout the country and that they will continue to enable the different categories of eligible tenant households to secure and retain suitable rented accommodation to meet their respective needs.

Additional information not given in the floor of the House.

Arising from the review, rent limits were adjusted upwards, from January 2007, for a number of household types in 14 counties.

There are currently over 59,000 rent supplements in payment, of which some 24,000 have been awarded since the current rent limits were set in January 2007. This demonstrates that rented accommodation is available within the current rent limits. I intend to have all limits reviewed next year with a view to implementing any revision found to be necessary from 1 July 2008.

The fact that there are over 59,000 tenants receiving rent supplement suggests that payment in arrears is not causing difficulty. Given the scale of cost involved and the Government's other social provision priorities, I have no plans to change the current arrangement.

It is estimated that the cost to the Exchequer of paying rent supplement in advance would be in the region of €33 million. Changing the payment arrangements would have to be considered within a budgetary context and in the light of resources available to me for improvements in social welfare generally.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Will the Minister outline any proposed changes in respect of the area as a result of all this consultation? The Minister will be aware that there are about 4,500 people in bedsits, the majority of whom are in Dublin city centre. They were described by the director of Threshold as poor quality, damp, vermin-infested firetraps, lacking basic necessities. The preliminary findings of Threshold's access housing unit's survey revealed that the biggest reason that landlords will not accept rent supplement is because it is paid in arrears, rather than in advance. Are there proposals to change that so that it will be paid in advance? It is clear that it is the biggest stumbling block. Landlords are looking for the deposit and the first month's rent upfront and if they can get someone who will pay that, they will pick them rather than the person who is on rent supplement.

Where a person makes an application for rent supplement and is refused, it takes about six weeks to assess the application. This effectively means that if the person does not get it, he or she owes the landlord six weeks' rent, which forces him or her back into homelessness. In light of the fact that between 5,000 and 6,000 people are homeless in this country, does the Minister intend to make any of these changes?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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As I said earlier, the review for this year has been completed. Clearly, there are issues within the system at which I would like to look. The system that is in place will run up to June next year. In the meantime, we will look at all of the issues, some of which were raised by Deputy Enright and some of which I am aware of, having interacted with many of these people who come to my clinic, as they do to those of Deputy Enright and everybody else.

What we are trying to do in the system is to genuinely support and help people who are in need of rent supplement and to use the system in such a way that nobody, in effect, should be homeless. That is the reality. I agree with the Deputy that the quality of some of the properties people are renting is appalling. People should not be given rent supplement for such properties. I was in the Department of the Environment, Heritage and Local Government and the Deputy might recall that I set up the Private Residential Tenancies Board and brought the legislation through the House. I would like to have a more full-on system. As the Deputy is aware, landlords must notify the Private Residential Tenancies Board of the tenancies involved. I have been alerted to some loopholes in that system whereby that has been avoided in a number of cases. If it needs legislation to do that, apart from just policy change or a shift in emphasis, we should introduce it.

The other major change has been moving people from the Department of Social and Family Affairs system to local authority housing. That is beginning to gather momentum. Many people who were on rental schemes, supported by my Department, are now in housing, having been housed in social housing by local authorities, but there are aspects with which I am not happy.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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I remind the Minister that there are 43,000 low income families on housing lists, compared to 23,000 in 1991. The Minister states that the review has been carried out and will not come into force until June. Will he inform the House if any of the questions to which I refer will be dealt with when changes are made in June?

Does the Minister intend to review rent caps? If the limit is €600 one cannot add €10 or €15 per week to the rent and this forces the tenant into a poorer standard of house, below that limit.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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It would be wrong to provide a specific answer seven months in advance of what may happen because that would have a major effect on the market and the people with whom we are both trying to deal. When the review, which will involve voluntary organisations, the Private Residential Tenancies Board and various Departments, is complete——

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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I am confused. Is there another review for next year?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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There was a review that set up the system that is effective from January 2007 to June 2008. We are now beginning a review for 2008.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 60: To ask the Minister for Social and Family Affairs if the national carers strategy will be published before the end of 2007 as stated in the social partnership agreement, Towards 2016, and An Agreed Programme for Government; and if he will make a statement on the matter. [32584/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Supporting and recognising carers in our society is a priority of the Government and has been so since 1997. Over that period, weekly payment rates to carers have been greatly increased, qualifying conditions for the carers allowance have been significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit and the respite care grant have been introduced and extended. Recent reforms of the scheme allow people in receipt of certain social welfare payments, who are also providing full-time care and attention to a person, to retain their main welfare payment and receive a half rate carer's allowance. The amount paid will vary depending on their means.

One of the key Government commitments in the national partnership agreement Towards 2016 is the development of a national carers strategy and this commitment is reiterated in the programme for Government. One of the recommendations of the Joint Committee on Social and Family Affairs Report on the Position of Full Time Carers, which was published in 2003, was that such a strategy should be developed. I am pleased that we are now in a position to act on that recommendation.

The strategy will focus on supporting informal and family carers in the community. While social welfare supports for carers will clearly be a key issue in the strategy, other issues such as access to respite and other services, education, training and employment will also feature strongly. Co-operation between relevant Departments and agencies is essential if the provision of services, supports and entitlements for carers is to be fully addressed. For that reason, all relevant Departments and agencies will be involved in the strategy and there will be appropriate consultation with the social partners.

My officials have been in discussions with their colleagues in other relevant Departments to decide on the best approach to the development of the strategy. In view of the need to ensure that appropriate arrangements and structures are in place to support its development, it will not be possible to complete the strategy by the end of this year, as had been intended originally.

An interdepartmental working group, chaired by the Department of the Taoiseach, is being established to develop the strategy and to manage the consultation process. I expect the strategy to be completed by summer of 2008. The recent improvements in the income supports available from this Department represent major improvements in supports available to carers in the community. The development of a national carers strategy provides us with an opportunity to build further on these improvements and to consider other areas where progress can be made.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Why did the Government fail to prioritise the national carers strategy and meet its commitment in the social partnership agreement, Towards 2016, and in the programme for Government, which was only decided six months ago? It promised the carers strategy would be developed by the end of 2007. There are 27 days remaining and the Minister has made it clear this commitment will not be met. Will the Minister guarantee that the strategy will be published by summer of next year? Will specific commitments be made and quantified in terms of cost? This is what carers groups want. They do not necessarily want a glossy book to launch the strategy but set timeframes.

Will there be a focus on young carers as part of the national carers strategy? This is of concern to everyone. I do not expect the Minister to tell me what will be in the budget tomorrow but maybe he can give us a taste of whether the commitments made to carers in the programme for Government, such as the increases in eligibility, the doubling of the means test respite care grant and the extension of the fuel allowance, will be met?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Much as Deputy Enright might like me to do so, I cannot put the budget on the record of the House this afternoon. The development of a strategy for carers, which has happened over the past few years, resources and major income supports are very important. I, like Deputy Enright, have met many carers throughout the country who say that the quality of their lives has been transformed in recent years, not just because of the financial supports but because of the easing of the conditions by which one can access support. The process must be inclusive and that is the way carers want it. I have listened to what the groups want and they know what the Government is doing. They are supportive of the approach taken in the recent past.

These issues are on the table. It was not possible to have the strategy ready by the end of the year, a target that was unrealistic. I have instructed those involved in the process to finalise the strategy in the next six months. I agree with Deputy Enright that we do not need a glossy brochure to set out the strategy — some targets are obvious. Much of it is set out in the NAP inclusion and Towards 2016. It is a question of managing resources to get to the point where people will see continued improvement.