John Perry (Sligo-Leitrim, Fine Gael)
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Question 171: To ask the Minister for Social and Family Affairs if he plans to replace the rent supplement with housing benefit in view of the Comptroller and Auditor General expressing concern regarding the rise in the cost of rent supplement; the amount expended in the scheme to date in County Sligo; if he has received representations from local authorities to increase the maximum rent offered as rents have risen significantly; if he will grant such increases; and if he will make a statement on the matter. [24005/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I have no plans to replace rent supplement with housing benefit. While expenditure on rent supplement is unavailable on a county by county breakdown I can confirm that expenditure this year on the rent supplement scheme up to the end May 2006 in the HSE North West Area covering counties Sligo, Donegal and Leitrim is €5.63 million while expenditure nationally is €161,172 million.

Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may incur. I have not received representations from local authorities seeking increases in these limits. 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 in low income employment who may not qualify for rent supplement.

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.

My officials will again be reviewing the current levels of rent limits later this year in order in determine what limits should apply from December 2006 onwards. The review will take 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.

The review will also include consultation with the Department of Environment, Heritage and Local Government. In addition, it is expected a number of the voluntary agencies working in this area will also make 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.