Written answers

Tuesday, 10 October 2006

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 115: To ask the Minister for Social and Family Affairs if his attention has been drawn to concerns expressed by the Comptroller and Auditor General regarding the rapid rise in the cost of rent supplement; his views on the replacement of the rent supplement with a new housing benefit scheme; and if he will make a statement on the matter. [31730/06]

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 193: To ask the Minister for Social and Family Affairs the progress made to date with regard to consideration by his Department of a new mortgage support plan; when he expects the consultation period to be complete; if the scheme will be directed specifically towards people currently priced out of the property market; and if he will make a statement on the matter. [31729/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 115 and 193 together.

The supplementary welfare allowance scheme, which includes rent supplement, is administered on my behalf by the Community Welfare division of the Health Service Executive. The Value for Money examination undertaken by the Comptroller and Auditor General (C&AG) looked at the rent supplement scheme over the period 2000 to 2005.

One of the main issues raised by the C&AG relates to the substantial increase in expenditure on rent supplement over the period of review. As the report notes, it increased from €151m in 2000 to almost €370m in 2005. In the same period recipient numbers rose from 42,700 to just over 60,000. The factors driving the increase include an increase in the number of recipients, changes in household composition, increased rent levels and policy changes such as easing the means test.

During the period under review my Department took measures to address increases in expenditure. For example in December 2002, my Department assumed responsibility for setting limits in respect of which rent supplements are paid. Until 2002, these limits were set by the then Health Boards. Rent supplements are not paid where rents exceed the maximum levels set other than in exceptional circumstances. The limits were again reviewed in December 2003 and June 2005 and a further review will take place before the end of 2006.

It is clear to me, and the report acknowledges, that rent supplementation under the supplementary welfare allowance scheme has, over the years, developed beyond the original objective of providing short-term assistance with accommodation costs. In recent years, a significant number of people have come to rely on rent supplements for extended periods, including people on local authority housing waiting lists. For this reason, the scheme needs to be viewed in the context of overall social housing policy, particularly in the case of long-term claimants.

In response to this situation, the Government has introduced new rental assistance arrangements including the rental accommodation scheme (RAS) giving local authorities specific responsibility for meeting the longer-term housing needs of people receiving rent supplement for 18 months or more, on phased implementation basis. When fully operational, local authorities will meet the housing needs of these individuals through a range of approaches including the traditional range of social housing options, the voluntary housing sector and, in particular, new public / private partnership arrangements.

According to recent information from the Department of the Environment Heritage and Local Government, to date over 11,000 rent supplement cases have been reviewed, 1,600 properties inspected and some 1,700 cases transferred to RAS. An additional 1,200 rent supplement households have also been allocated local authority housing.

While RAS is the way forward, I am also conscious of the need to look at other approaches to providing appropriate housing responses for long-term rent supplement recipients. As Deputies are aware, officials from my Department and the Department of the Environment Heritage and Local Government are together overseeing a study to identify possible viable alternative approaches to providing an appropriate housing response for those concerned. These would be in addition or complimentary to the range of social housing options currently provided for by that Department through local government initiatives. I understand that the study is well advanced and I expect to be apprised of its findings in the near future.

I have no plans to replace rent supplement with a general housing benefit scheme. The Government's priority is to provide housing, not new types of payments in lieu of housing. I will, of course, keep the rent supplement scheme under review and I may introduce further changes in the means test to improve work incentives, as I did in last year's budget. This targeted approach, together with delivering housing solutions to long-term rent supplement recipients, is likely to provide a better outcome than replacing the rent payment.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 116: To ask the Minister for Social and Family Affairs the plans he has to offset the increases in the cost of living for those dependent on pensions or other fixed social welfare income; if he will address this issue in the forthcoming budget; and if he will make a statement on the matter. [31778/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 428: To ask the Minister for Social and Family Affairs if he will offer old age pension and other social welfare recipients sufficient increase in the forthcoming budget to address increases in the cost of living in the past 12 months which completely eroded the 2006 budgetary increase; and if he will make a statement on the matter. [32129/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 116 and 428 together.

One of the key objectives of the 2006 social welfare package was to protect and enhance the value of all weekly rates of payment in relative terms by giving increases which were far in excess of emerging inflation for this year.

State non-contributory pensions were increased by €16 per week or 9.6% while the contributory pension was increased by €14 per week or 7.8% with proportionate increases being given to those on reduced rates of payment. These increases mean that the Government is well on its way to completing its commitment to bring the basic State pension to €200 by 2007. In addition, the Over-80 allowance was also increased by €3.60 per week to €10 and the Fuel Allowance by €5 per week to €14. The increases in pensions were well ahead of the 4.5% increase recorded in the CPI for the twelve months ending last August, thereby protecting and enhancing the standard of living for all pensioners.

Budget 2006 also saw an increase of €17 per week in the weekly rates of payment for persons of working age bringing the lowest rates of payment to €165.80 per week. This represents an increase of 11.4%, which is once again well above the 2006 projected inflation rate and ensures that the Government remains on course to deliver on its commitments on social welfare rates.

By any standards, the levels of increases and other improvements announced in the Budget were exceptional. I look forward to making further progress for pensioners and all other social welfare claimants in this regard in the forthcoming Budget.

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