Dáil debates

Thursday, 5 March 2009

Priority Questions

Social Welfare Benefits.

3:00 pm

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 3: To ask the Minister for Social and Family Affairs the way she plans to reform the rent supplement scheme to ensure that those eligible for the payment can access good quality accommodation; and if she will make a statement on the matter. [9372/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

Rent supplement is payable to people who are unable to meet the cost of renting private accommodation and is intended as a short-term income support. Currently, almost 80,000 people are in receipt of rent supplement, an increase of 34% since the end of December 2007.

Rent limits are set at levels that enable eligible households to secure and retain basic suitable rented accommodation. Maximum rent limits are prescribed in regulations and are time limited so that they can be adjusted in light of rent levels generally. The most recent regulations cover the period up to 31 December 2009.

Rent limits are currently being reviewed. In testing the level at which basic accommodation can be secured, the Department is informed by analysis of data on rent supplement tenancies, data provided by the Private Residential Tenancies Board on tenancies registered by it and submissions by interested statutory and non-statutory bodies, including the Department of the Environment, Heritage and Local Government. The review will also be informed by the latest private rented index report to be published by the CSO in mid-March 2009.

The Government has recently approved a package of measures to update minimum standards regulations for rental accommodation. Enforcement of these standards is the responsibility of local authorities. Accommodation occupied by rent supplement tenants should at least meet minimum housing standards. Where a housing authority notifies the HSE of non-compliance with housing standards, rent supplement is not payable. Where the HSE becomes aware of accommodation that appears to be substandard it notifies the local authority of its concerns. The HSE may also advise prospective tenants that rent supplement will not be paid in respect of tenancies at the premises.

The rental accommodation scheme, RAS, which is operated by local authorities, provides access to a range of long-term, good quality housing supports for those availing of it. Details of people in receipt of rent supplement for 18 months or longer are notified to the local authorities through the Department of the Environment, Heritage and Local Government for inclusion in the schemes. This data is also used by local authorities in enforcing housing standards. Currently, 31,000 people are getting rent supplement for 18 months or longer and almost 18,000 tenants have been transferred from the rent supplement scheme to the RAS since 2005. The Department is committed to supporting local authorities in meeting their responsibilities in the enforcement of housing standards and the implementation of the RAS.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Members should desist from calling rent supplement a short-term payment because at this stage it is anything but. Is the Minister concerned that her Department has not come close to meeting its targets regarding the transfer of people from rent supplement to the RAS? The transfer rate is nowhere near what was expected. How does she intend to address this and when does she expect the aforementioned 31,000 recipients of rent supplement to move on to the RAS? When does she expect to reach that target figure?

The Minister is probably aware of a survey conducted by Threshold that she should take into consideration during her review. Of 172 bedsit accommodation units examined by Threshold in the Dublin area, only three were available that complied with the new regulations and accepted rent supplement. A serious problem exists at the lower level of the market regarding the amount being paid to people and the quality of the accommodation. How does the Minister intend to address this issue? While I believe there is a need for a review of rent limits, I wish to ensure that those at the lower end of the market will be protected in that review.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I will call the Deputy again.

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

A total of 18,000 people have been moved from being in receipt of rent supplement onto the RAS. Of those, 8,600 were placed in social housing and the rest, through the local authorities, were perhaps placed in private housing of good quality or whatever. The great benefit of being on this scheme is that once one qualifies for it, one can work, thereby removing any disincentive to work that may have obtained. The more people that transfer the better, and the Department has been working closely with——

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Why are they not doing so?

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

My Department been working closely with the Department of the Environment, Heritage and Local Government, which has responsibility for housing. There is close co-operation between the Departments to ascertain whether more people can be taken off rent supplement. In recent months, all local authorities have begun to give priority to this issue and I look forward to seeing even greater numbers arising therefrom.

The Deputy referred to the rent amounts. The CSO survey guides the Department most and is due out in the middle of this month. It will feed into the rent limit review being undertaken by my Department. It is significant that 21,000 units are available for rent in Dublin at present, whereas only 10,000 units were available one year ago. Consequently, this should affect rent prices, as well as the availability of good quality accommodation.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

The Minister should answer the questions I asked, rather than the questions she would like me to ask. I asked her the reason her Department has not reached its targets regarding the transfer from rent supplement to RAS. I did not ask for a dissertation——

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The answer is because of the Department——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Allow the Deputy to put her question.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

The Department has not managed to effect the transfer and has not reached its targets. I ask again, why not? Second, in the course of the rent limit review, has the Minister considered setting up a deposit protection scheme? Her Department is unable to get back between €6 million and €7 million a year that is paid to landlords when deposits are forfeited. Were a scheme put in place whereby those deposits were protected, it would be a saving to the Department. Has the Minister examined this issue and does she intend to do anything about it?

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

Perhaps if the Deputy were to listen to the replies that are given, she would find they answer the questions.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

I did listen.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Allow the Minister to reply.

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

I will revert to the first question asked by the Deputy, which I already have answered. However, I am happy to answer it again. The provision of social housing and responsibility for the RAS rests with the Department of the Environment, Heritage and Local Government, with which we are working very closely to ensure that those who are on rent supplement can transfer.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

It is not happening.

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

As for the quality of accommodation, again this is the responsibility of that Department and new regulations came in force on 1 February. They apply to new premises immediately and allow a four-year phasing-in time for other premises, which should help to improve the quality. As I mentioned, the availability of additional places, some of which are new, should ensure that people are able to get better quality. At present, the Department does not operate a deposit return scheme. However, it is something we can examine to ascertain whether it would be a viable option.