Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

Question 49: To ask the Minister for Social and Family Affairs if his Department has carried out a recent evaluation of supplementary welfare allowance rent caps with a view to revising caps to reflect actual current market rates for quality accommodation. [23042/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The supplementary welfare allowance scheme, which is administered on my behalf by the community welfare division of the Health Service Executive, provides for the payment of a rent supplement to assist eligible people who are unable to provide for their immediate accommodation needs from their own resources and who do not have accommodation available to them from any other source.

Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may incur. Setting maximum rent limits higher than are justified by the open market would have a distorting effect on the rental market, leading to a more general rise in rent levels and in landlord income. This in turn would worsen the affordability of rental accommodation unnecessarily, with particular negative impact for those tenants on lower incomes.

The limits currently in place came into force with effect from January 2004. Notwithstanding these limits, under existing arrangements the Health Service Executive may, in certain circumstances, breach the rent levels as an exceptional measure. This discretionary power is only used in special cases but it ensures that individuals with particular needs can be accommodated within the scheme.

My Department is in regular contact with the community welfare staff of the Health Service Executive regarding the various elements of the scheme. In the course of these ongoing contacts, the prescribed upper limits on rent levels supported under the rent supplement scheme have not emerged as having a detrimental impact on the ability of eligible tenants generally to secure suitable rented accommodation to meet their needs. In 2004, over 41,000 rent supplement claims were awarded and so far this year over 19,000 claims have been awarded.

My officials are reviewing the current levels of rent limits to determine what limits should apply from later this year. The review is taking account of prevailing rent levels in the private rental sector generally, based on indices from the Central Statistics Office, together with detailed input from the Health Service Executive on the market situation according to patterns of rent supplement applications within each of its operational areas. Data published by the CSO suggest that rent levels rose by 1.5% in the last six months. Rents fell by about 10% over the previous two and a half years.

The review has also included consultation with the Department of the Environment, Heritage and Local Government. In addition, the Irish Council for Social Housing and a number of the voluntary agencies working in this area have made detailed submissions. This process will ensure that the new rent limits reflect realistic market conditions throughout the country and that they will continue to enable the different categories of eligible tenant households to secure and retain suitable rented accommodation to meet their respective needs. I intend to introduce new regulations on this shortly.