Catherine Murphy (Kildare North, Social Democrats)
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3. To ask the Minister for Environment, Community and Local Government if the housing assistance payment will be confined to existing rent cap limits for rent supplement in locations where those rent caps are being routinely negotiated upwards; if so, how they anticipate acquiring houses under the HAP scheme; and if he will make a statement on the matter. [29234/15]

Catherine Murphy (Kildare North, Social Democrats)
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This question relates to the housing assistance payment, HAP, scheme. We know the market rents are, in most cases, higher, and sometimes significantly higher, than the capped rents, yet the scheme is supposed to be limited to the levels of the current rent caps as it relates to rent assistance.

Paudie Coffey (Waterford, Fine Gael)
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The implementation of the housing assistance payment is a key Government priority and a major pillar of the Social Housing Strategy 2020. The HAP scheme removes a barrier to employment, by allowing recipients to remain in the scheme if they gain full-time employment, it improves regulation of the rented accommodation being supported and it provides certainty for landlords as regards their rental income.

HAP has been rolled out to all categories of households in 13 local authority areas. There are now over 2,600 households in receipt of HAP and a further cohort of local authorities will commence HAP on an incremental basis later this year. While securing accommodation under HAP can be challenging in areas where there is a shortage of supply, the numbers of households securing accommodation nationally under HAP continue to rise, with an average of 100 new tenancies being registered each week at present.

Regulations prescribe the maximum rent limits that apply in each local authority area where HAP has commenced. The limits are based on the rent supplement limits set out by the Department of Social Protection. In prescribing these limits, household size and prevailing rents in the relevant areas are also taken into consideration. My Department works closely with the Department of Social Protection in this regard and monitors the data gathered by HAP pilot authorities. In this context, I have recognised that South Dublin County Council requires additional flexibility in the operation of HAP given the challenging rental market within its administrative area. Regulations will be signed very shortly to provide for an additional 20% flexibility above the previous maximum rent limits in south Dublin where such flexibility is necessary in order to secure a suitable dwelling for a relevant household. The Minister, Deputy Alan Kelly, and I will continue to keep this matter under active review.

Catherine Murphy (Kildare North, Social Democrats)
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The very fact that the Minister of State has selected south Dublin shows that it is the first big urban local authority where there are serious rental pressures significantly above the rent caps. That is exactly the point I am trying to get to. HAP has the advantage of taking that poverty trap out of the system, which I acknowledge, but in fact it could end up being a very costly solution by virtue of the fact that the rent caps are being negotiated up on a case-by-case basis. In my area, the rent cap is €750 but we negotiate on a case-by-case basis every day. If we do not, in the region of 1,200 to 1,300 people will end up homeless. It is significantly above the cap and the 20% the Minister of State is talking about will be very challenging in terms of getting additional properties for the scheme. Obviously, it does not deal with the supply side issue at all. Has the Government costed into the 2020 strategy the actual situation rather than the situation as it would like to find it in terms of the caps and market rents?

Paudie Coffey (Waterford, Fine Gael)
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This is a matter we keep under continual review and in respect of which we engage closely with the Department of Social Protection and HAP pilot local authorities. South Dublin County Council reported that the successful implementation of the scheme was being hampered due to the shortage of available accommodation for eligible households within the rent limits which apply. We recognised that there was a need for greater discretion and flexibility in that particular case. Currently, we do not have plans to extend the flexibility to other local authorities, but we are continually reviewing and monitoring the situation in those areas. We are committed in government to making HAP work and increasing numbers are joining the scheme. We will keep it under active review as local authorities come forward. If they make the case, the matter will be considered at that stage.

Catherine Murphy (Kildare North, Social Democrats)
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I can tell the Minister of State straight off that he will find it impossible to get houses in my area for anything approaching the rent cap limit, even with 20% flexibility. Fingal, Dublin City Council, Dún Laoghaire, Kildare, Meath and Wicklow are all going to be a huge challenge. Has the Government actually looked at where people are coming into the scheme? Are they coming into the scheme in areas that pose less of a challenge? Is HAP really going to require very significant increases for the areas that are under the kind of rental pressure we see in the major urban centres?

Paudie Coffey (Waterford, Fine Gael)
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We recognise that there are pressures, particularly in Dublin and the conurbation around it, in terms of all of the housing issues. HAP is one solution to address the housing demand that is there. With regard to rent limits, I have outlined that where the case is made and there is a real need, as in South Dublin County Council's functional area, we have applied the flexibility and discretion. Local authorities will vary in terms of the success of HAP and the demands on it. Substantial gains have been made in the pilot local authority areas in Limerick, Donegal and Kilkenny. A number of new local authorities just joined the scheme on 14 July and are at the very early stages. It is something to which I am committed to keeping under active review. We are committed to having a successful HAP scheme because we depend on it. If the demand arises, we will continue to engage with the Department of Social Protection and its officials and address it in due course.