Dáil debates

Tuesday, 13 November 2012

Ceisteanna - Questions - Priority Questions

Rent Supplement Scheme Expenditure

2:20 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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To ask the Minister for Social Protection her views on the findings of the Focus Ireland report Out of Reach The Impact of Changes in Rent Supplement, that persons are homeless as a consequence of the cuts to the rent supplement scheme ; her response to the findings; and the steps she will take on foot of the report. [49977/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Approximately 89,000 persons are in receipt of rent supplement, for which the Government has provided €436 million in 2012. The aim of rent supplement is to provide short-term income assistance, rather than to act as an alternative to the other social housing schemes operated by the Exchequer. Officials in the Department are reviewing the findings and recommendations made in the Focus Ireland report, Out of Reach: The impact of changes in Rent Supplement, published last week and I will discuss the report with them. It should be stated the research was based on a small-scale sample of ten households, of which nine experienced homelessness at some point. This group cannot be considered as representative of the majority of the approximate 89,000 recipients of rent supplement. The report indicates that 27 landlords or property agents were interviewed by telephone.

Revised rent limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. These limits were set after an analysis of the most up-to-date market data available. Special provisions are in place, whereby rent limits can be exceeded in order to assist persons who are homeless or at risk of homelessness. Approximately 42,000 rent supplement claims have been awarded in 2012, which shows that accommodation can be secured within the new limits. Departmental officials are continuing to provide support and advice for customers in addressing their accommodation and other needs. They also continue to examine the impact of the rent limits on those who claim rent supplement. The next review of rent limits will take place before June 2013.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister was dismissive of the report by Focus Ireland. It is a snapshot in time because Focus Ireland does not have the budget to carry out a more extensive study. However, it is not the only organisation which has come to this conclusion. I do not know if the Minister is aware of Threshold's work with a significant number of tenants in the private rented sector who are in receipt of social welfare. Threshold has stated in its pre-budget submission that despite assertions to the contrary, it knows that rent supplement cuts have led to people being made homeless. In her reply to a parliamentary question I tabled on 23 October the Minister stated there would be no increase in homelessness because of these changes.

Focus Ireland works directly with the homeless and those at risk of homelessness. The Minister has a copy of the organisation's report in front of her.

It confirms the assertions made by Threshold, what I have found in my constituency and what many others to whom I have talked say, that there is evidence the changes have contributed to a number of individuals becoming homeless and made it more difficult for people moving out of homelessness to secure appropriate accommodation. Somebody is telling porkies. Is it Threshold, Focus Ireland or the Minister? Somebody is ending up homeless owing to the changes made by the Minister last year.

2:30 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The report compiled by Focus Point, an organisation of which I have long been a supporter, is important. What I said was that the sample number of cases, ten, out of a total of 89,000 was part of the organisation's caseload for the current period and very small. They were particular cases in which Focus Point had dealt with individuals with problems. None of the individuals included in the study was unable to access accommodation ultimately. However, having looked at the cases included in the sample, I was surprised that two of the individuals were aged only 20 or under 20 years. As the report did not go into their family histories, I am unaware of the particular problems. However, I am concerned that young people of that age have left home. I would like to see the emphasis in public policy on young people of that age being encouraged to remain at home with their families. In addition, two of the cases concerned families, the members of which had described themselves as Travellers whom they felt suffered discrimination. This, therefore, was not an issue of homelessness but another issue.

All I am saying is that the sample chosen only amounted to ten cases. The Department has settled 42,000 housing rent cases under the new arrangements this year. The new rent levels are designed to ensure rents reflect what is considered to be an appropriate level to meet the circumstances of the family or individual involved. It is important I ensure the Department which holds a share of approximately 30% of the private rental market does not drive up rents. Some people in work, students and older people are renting and paying their own rent. If the Department, as a large participant in the rental market, drives up rents, it will have consequences for people who are working, families paying for students going to college and older people paying their own rent. Given the fallen values in the property market, the reductions sought in rent supplement which are extremely modest constitute an appropriate action. The collapse in values in the property market ought to be reflected in lower rents.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister is in denial of the reality in the property market and the rental market, in particular, in this city, Cork and Galway, as seen in the Daft.ie rental report for the second quarter of this year. Has the Minister been made aware of the fact that rents are rising in these areas? Is she living in denial of the reality for young people?

In many cases, young people end up out of their homes for various reasons. It is a bad sign that a Labour Party Minister, in particular, is suggesting such persons should return to abusive homes or homes they have left for other reasons and that they cannot rely on State aid or intervention.

2:35 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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During the years I have known people who, unfortunately, have become homeless. I know it is important to have policies that support young people as much as possible to stay in their own homes or with relatives if they are unable to stay with their parents for some reason. A structure that essentially allows young people who have left their homes to drift and move around - they may be on social welfare and living in bed and breakfast accommodation - is not the best outcome. I support a fail-safe mechanism which looks after young people who have left their homes for some reason, perhaps in the circumstances described by the Deputy. That mechanism is also supported by the State. As a matter of public policy, we should try to ensure as few people as possible experience the particular circumstances of leaving home. During the years Focus Point has been very aware of the need for long-term solutions to housing problems in order that people can have a place of their own. I reiterate that 42,000 rent supplement amounts have been negotiated in the cities described by the Deputy. While I accept that some difficulties are being experienced, I emphasise that the vast majority of rental cases are being settled and that people paying tax and PRSI are getting better value when their taxes are being spent. That is better than spending the moneys to increase the rents received by landlords, which is what Sinn Féin seems to be suggesting.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister knows very well that we want to do the exact opposite.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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It wants to drive up rents.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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We have had this argument before. We have said the State should negotiate directly.