Seanad debates

Wednesday, 19 December 2007

Social Welfare Bill 2007: Committee and Remaining Stages

 

12:00 pm

Photo of Máire HoctorMáire Hoctor (Tipperary North, Fianna Fail)

The programme for Government includes a commitment to reduce long-term reliance on rent supplement. This will be done mainly by keeping the standard means test for rent supplement under review to provide enhanced financial incentives for people taking up employment, or other professional options, and providing long-term housing solutions under the rental accommodation scheme, etc. Improvements in the means test were implemented in June 2007. If a person has an additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income, together with 25% of any additional income above €75, is disregarded for means assessment purposes. This ensures that those who return to work, or participate in the training schemes, are better off as a result of taking up such opportunities. Rent supplement may continue to be paid to a person in full-time employment, as long as they satisfy the improved means testing arrangements I have outlined and have been accepted as having a long-term housing need under the rental accommodation scheme.

Rent supplement and all other supplementary welfare payments are paid in arrears. The cost to the Exchequer of paying rent supplement in advance would be approximately €33 million. Advance payment of rent is possible in exceptional circumstances, through the exceptional needs payment, at the discretion of community welfare officers. Exceptional needs payments can be made to cover rent deposits, if necessary. That over 59,000 people are receiving rent supplement indicates that the system is not problematic — it is not restricting those who need the assistance of rent supplement when seeking accommodation in the current rental market. There is no evidence of tenants making complaints about refusals to the Department or the HSE. The current rent limits will apply to the period between January of this year and June of next year. Data published by the Central Statistics Office indicate that rents are stable at present — they fell by 0.2% in September and were unchanged in October.

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