John Perry (Sligo-North Leitrim, Fine Gael)

I thank the Senator for raising this important issue. Since 2005 rent supplement expenditure has increased from €369 million to €516 million in 2010. The number of persons claiming the allowance increased from almost 60,200 in 2005 to more than 96,100 as at mid-November 2011, a 60% increase.

The household budget facility operated by An Post on behalf of the Department of Social Protection already allows certain customers to pay regular amounts towards various household bills, including local authority differential rents, by direct deduction from their social welfare payments. This will be a vital facility for local authorities when they take over responsibility for providing for the housing needs of long-term rent supplement recipients.

On 16 June 2011 the Minister for the Environment, Community and Local Government and the Minister of State with responsibility for housing published a new housing policy framework statement. This statement, which reflects the content of the programme for Government, sets out the principles to underpin the development of housing policy into the medium term. Specifically, it provides for the transfer of responsibility in providing housing needs for long-term rent supplement recipients to housing authorities on a phased basis.

A multi-agency steering group has been established to develop proposals to give effect to this transfer. The group consists of representatives from: the Departments of the Environment, Community and Local Government, Social Protection, and Public Expenditure and Reform; the County and City Managers Association; and the Housing Finance Agency. Its remit is to finalise proposals and operational protocols for the transfer of responsibility from the Department of Social Protection to housing authorities for persons who have long-term housing requirements, that is, those in receipt of rent supplement for more than 18 months. This will help to achieve the key Government commitment of removing barriers to employment while at the same time returning rent supplement to its original purpose as a short-term income support payment for those temporarily unemployed.

An issue being considered by the steering group is the current arrangements in regard to the deduction of the local authority differential rent from a person's social welfare payment. At present this arrangement can be terminated by the tenant without either the agreement of, or prior notice to, the local authority. This creates a degree of financial uncertainty for local authorities which must be resolved.

I am sure the issue raised by the Senator will be a matter for serious consideration by the steering group. His proposal makes sense and, as such, I am certain it will be given due consideration by the Government in the context of its review of the steering group's recommendations.