Dáil debates

Wednesday, 6 May 2015

Ceisteanna - Questions - Priority Questions

Rent Supplement Scheme Payments

2:50 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
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3. To ask the Minister for Social Protection if she will ensure that the cap on rent allowance is cognisant of the recent and ongoing increases in rental rates, particularly in the Dublin area. [17540/15]

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
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This has arisen on a number of occasions in questions to the Minister of State. The Minister of State cannot control the rent situation in Dublin or elsewhere but rents have increased by 31% since 2010, particularly in Dublin and the commuter belt in Kildare, where people have been forced out of Dublin city because of high rents. Rents also affect people who do not receive rent supplement and who are paying the full lash. Will the Minister of State consider reviewing and increasing the rent supplement?

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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Rent supplement continues to play a vital role in housing families and individuals, with the scheme supporting approximately 70,000 people this year at a cost of €298 million. Over 4,700 claims have been awarded in 2015, of which 1,380 were in Dublin. There are also over 1,600 people in receipt of the new housing assistance payment. This shows that landlords are engaging with the State private rented sector schemes and that people are being accommodated under these schemes. The Department’s recent review of the maximum rent limits found that increasing rent limits at this time could potentially add to further rental inflation and, in an already distressed market, affect rent supplement recipients, those on lower incomes and students. The impact of increasing limits will yield only a marginal increase in available supply, if at all, with the certainty that raising limits will increase costs disproportionately for the Exchequer with little or no new housing available.

On a national basis, officers administering the rent supplement scheme continue to provide flexibility in assessing customers’ accommodation needs. The Department is also working with Threshold’s tenancy sustainment service in Dublin and Cork city where the shortage of accommodation is most acute. The primary objective of these initiatives is to ensure a speedy intervention for families at immediate risk of losing their tenancy through rising rents.

I am keeping this matter under review and am satisfied that this approach is the appropriate response at this time. These measures have assisted more than 1,500 households, 900 of which are in Dublin city and county, to retain their rented accommodation through increased rent supplements.

2:55 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
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I presumed the Minister of State would raise the issue of the tenancy protection service. I have the report, which states "553 tenancies were protected, including 462 who were in receipt of an uplift in payment in their rent supplement with the remaining 91 tenancies sustaining their tenancy, as a result of TPS advocacy work." However, more and more families are losing their homes and more and more families are in crisis accommodation. The Simon Community stated last week that as many as 3,500 adults and children could be in emergency accommodation by June. This is still going on and people are still losing their homes. More direct intervention is required. Government could put a cap on the rent landlords can charge and link that to an increase in rent supplement to keep people in their homes even for three years. Housing emergency legislation should be brought in. We brought in financial emergency legislation, so why should we not bring in housing emergency legislation for three years to hold rents as they are and to ease people over the next period of time in which the Government is going to build the 1,500 houses, for which it claims it has the money? These measures must all be interlinked. There must be a review of rent supplement. It cannot keep going the way it is.

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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I have talked to many people about this and not just in respect of the Dublin area. An increase in rent allowance probably will not result in a single additional unit. We are in the middle of a supply crisis. There are not enough units around the country. This is not just the case in Dublin. I was recently talking to councillors in Clonmel about the issue. There were only four three-bedroom houses up for rent in that town, which has a huge demand. The increase in rent allowance would not bring an additional unit on the market, but would inflate rent levels in the area. It is challenging. The Minister for the Environment, Community and Local Government, Deputy Kelly, will bring proposals on rent certainty. However, what we must do is to increase supply as quickly as possible. Very little has been built since 2008 and with the increase in the number of people in employment, demand has increased further, especially in the Dublin area. The focus must be on the provision of additional units. I do not believe at this stage that an increase in rent allowance would give us a single unit in the Dublin area. It would just create a false bottom for prices. A number of people who have come onto rent allowance this year have succeeded in getting rental accommodation in the Dublin area. I gave the numbers earlier, but I think it was 1,300 new claims. It is extremely stressful. I am sure Deputy Collins's clinic is like mine in that we deal with people in dire need of accommodation. What we need to do is to supply that as quickly as possible through a building programme. That is the way forward.

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
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The fact is that no housing will be built for at least two years. We will be facing this crisis of families losing their homes because of rent increases. I would be delighted if the Minister, Deputy Kelly, introduced rent certainty and capped rent at a certain level even for three years on an emergency basis and then looked at how people can be protected with regard to rent supplement to keep them in their homes for that time, depending on enough housing coming on stream.

3:00 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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Like me, Deputy Joan Collins, was a member of Dublin City Council, and she saw the number of voids across the city council area. A significant amount of money has been given to local authorities to bring those voids into use. We also have a construction programme which is badly needed, which would develop social units. I do not believe that Deputy Collins believes that if we increase the level of rent that it will provide additional units. She knows that will not happen.

Photo of Joan CollinsJoan Collins (Dublin South Central, United Left)
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Support must be provided to keep people in their homes.

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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Only a certain amount of units are available and we would just inflate the cost for low and middle income families. There is no doubt many people are in a very stressful situation, and I hope now that we are coming out of the recession we will be in a position to keep ploughing investment into the area. Rent supplement was never designed as a long-term housing strategy. It did become such under the previous Administration when it stopped building social housing.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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That is not true.

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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The Government has already started to build social housing. Rent supplement supports approximately 70,000 people. It was just bonkers to allow the supplement to grow into a social housing strategy by accident.