Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I raise this issue because the second change to the rent supplement ceiling in less than six months is having a huge effect. The cuts in January caused problems and the most recent cuts have created further problems and made the situation much worse. In my constituency of Laoighis-Offaly the rent limits have been reduced to well below the rental rates in the private market. Many tenants are going short of food two or three days a week to pay rent, and I am sure it is the same in the Minister of State's constituency. They do not turn on the heating in the winter months.

The Minister for Social Protection, Deputy Burton, must know what is going on. Landlords simply will not rent accommodation to tenants at less than the limit set by the Government, and experience shows this. Tenants on the lowest income in the State, namely, supplementary welfare allowance, jobseeker's allowance and disability benefit, not only pay the tenant's minimum contribution of €35 to €50 from their income, which is sometimes less than €188 per week, but they also pay the difference between the Department limit and the actual rent charged. There are many examples of this in the constituency of Laoighis-Offaly and throughout the country.

The new maximum rent limits in Laois and Offaly have no connection with what is being charged in the marketplace. According to the new rates, a single person is supposed to be able to rent for just over €70 per week or €340 per month, a couple is supposed to be able to rent for €350, and a family of four is supposed to be able to rent for €480. I cannot find one property in the area in which I live for a family of four for €480 or for a single person for €340. In Offaly the limit is €360 for a single person, €450 for a couple with one child and €475 for a family of four. The figure of €475 is €5 less than in Laois and has been reduced by €65. I checked with local estate agents before coming to the Chamber to ensure I know what I am talking about. If the Minister is able to find such properties, I ask her to come to the Chamber and tell me. This is unrealistic and is causing hardship.

Rent allowance is supposed to be a temporary short-term measure to tide people over until they either buy their own house, which they cannot do because they cannot obtain mortgages, or get local authority housing, which they cannot do either because local authority housing is not available. It has become a long-term measure and people are trapped in awful poverty. As the Citizen Information Centres and any Deputy or local authority member will tell the Minister of State, the tenants are making up the difference. Along with the minimum contribution, they also pay the excess between the limits the Government has set and what is charged in the marketplace. This needs to be addressed and I appeal to the Minister of State not to give me a Civil Service answer. I want him to address this issue in order that those on the lowest incomes in the State have some hope of having a basic standard of living.

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

On behalf of the Minister for Social Protection, Deputy Burton, I thank Deputy Stanley for raising this issue. She is unable to be in the Chamber this afternoon.

The purpose of the rent supplement scheme is to provide short-term income support to eligible people 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, and not to act as an alternative to the other social housing schemes operated by the Exchequer. Approximately 85,000 people receive rent supplement for whom the Government has provided more than €403 million in 2013.

Revised rent limits under the rent supplement scheme came into force with effect from Monday, 17 June 2013 and will be in place until 31 December 2014. The new rent limits have been determined following an extensive review of the private rental market based on the most up-to-date data available. This review continues the emphasis of previous rent limit reviews to ensure value for money is achieved while at the same time ensuring people on rent supplement are not priced out of the market for private rented accommodation. The Department funds approximately 30% of the private rented sector so it is essential that rent limits are kept under review. The new rent limits have been set using the 35th percentile ensuring sufficient housing is available for recipients of the scheme.

The Department has completed a full review of rental costs throughout the country using data received from the Private Residential Tenancies Board of actual rental tenancies registered with it. The Department also used publicly available data sources, including the Central Statistics Office rental indices, the www.daft.ie rental report and leading websites advertising rental properties to ascertain the market trends and the current asking prices for rental of one, two and three bedroom properties. The overall findings of the review are in line with market trends. There have been increases in the maximum rent limits in Dublin and Galway while there have been some reductions in a number of rural counties, reflecting the conditions in the rental markets there. The overall cost of this measure for 2013 is approximately €7 million which can be met from within the existing provision for the scheme.

The Department is satisfied the new rent limits provide access to accommodation for persons claiming rent supplement. Departmental officials will continue to monitor the impact of the revised rates and those administering the scheme will continue to ensure the accommodation needs of rent supplement recipients are met.

Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for his reply, but he did not answer my question. Where in Portlaoise or Tullamore can he or the Minister, Deputy Burton, show me an apartment for €340 per month? Where can they show me a family home in Portlaoise or Tullamore that can be rented for €450 per month?

Four categories have been cut in the Kildare constituency of the Acting Chairman, Deputy Wall, five in Laois and three in County Offaly. Indeed, one category in Offaly was reduced by €75 for a family of three. While Sinn Féin wants value for money, the only way to achieve this measure is to introduce rent controls, something that no Government in recent years has been prepared to do. The Government cannot impose a limit that bears no relation to the market.

The Minister of State mentioned that the Department got information from the Private Residential Tenancies Board, PRTB. Instead of €400 per month, landlords could be charging €460, €480 or €500. They will register with the PRTB at the limits set by the Department, but those are not the amounts charged when people rent from them.

I draw the Minister of State's attention to a report by the Citizens Information Centre, CIC, on the centralised rent supplement unit, CRSU. I will mention the CIC's survey briefly, as I was brief the first time I spoke. Some 92% of people who e-mailed the CRSU were not e-mailed back, 94% of calls to the CRSU were not answered and 100% of those who called were not called back. The CIC is a fairly reliable body that does great work. Will the Minister of State bring this report and the issue of thresholds to the Minister's attention? I am not trying to be smart.

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I know.

Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I appeal to the Minister of State to raise this issue with the Department and to ask it to examine the limits. If any civil servant can show me where properties in Tullamore, Portlaoise or any other town can be rented for the amounts in question, I will give him or her €20 out of my own pocket. Is that all right?

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I certainly will not be cross about the €20. Recently, the Department completed a full review of each county's rental market. It is important that each county was considered separately. Deputy Stanley mentioned figures, but I can speak about Sligo. Given the number of estates available, properties can be rented for €340, €450 and €475. Many landlords would be delighted to have guaranteed payments.

There is no offset relationship between the increase in rental limits in urban and city areas and the decrease in some rural counties. The review reflects the market conditions, namely, increasing rental prices in urban areas with reductions in rural locations. During the review, the Department analysed data received from the private rental sector. I would be amazed if people were putting one figure on a contract and paying another.

Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister of State would know it from his constituency office.

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I would not, to be honest. When entering into rental agreements, people are legally obliged to supply the details of their rents to the PRTB.

Officers also used publicly available data sources, including the Central Statistics Office, CSO, figures on the rental sector, the www.daft.ie rental report, which was up to date, and websites advertising rental properties, to ascertain market trends and current asking prices. Views were also sought from a number of stakeholders to inform the review process, including the staff administering the scheme, the Department of the Environment, Community and Local Government, the HSE, Threshold and Focus Ireland. This raft of people agreed with what I have stated. The rent limits established were based on the market conditions and characteristics of each county.

The principal purpose of the review was to set rents so that a rent supplement recipient could access suitable and appropriate housing. Where it was found that rents had reduced, the respective maximum limits were lowered, thereby ensuring limits remained in line with their respective rental markets. Similarly, as rents have increased in some counties, maximum limits have been adjusted upwards to reflect local market conditions.

If this is a major issue in County Offaly, I suggest that the Deputy speak directly to the Minister. A separate review was conducted of each county. If the Deputy brought information about Portlaoise to the Minister, she might consider a rent review of that area. I see no issue with the rents that are being paid in Sligo.

Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I had cases yesterday in which application forms-----

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy should bring them to the Minister's attention.