Kathleen Lynch (Cork North Central, Labour)
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Question 109: 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 those currently priced out of the property market; and if he will make a statement on the matter. [37600/06]

Liz McManus (Wicklow, Labour)
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Question 119: To ask the Minister for Social and Family Affairs the proposals he has for a review of the current rent supplement scheme, especially in view of criticism from the Comptroller and Auditor General of the cost of the scheme; and if he will make a statement on the matter. [37601/06]

Bernard Allen (Cork North Central, Fine Gael)
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Question 140: To ask the Minister for Social and Family Affairs the number of households currently in receipt of rent supplement; the targets he has set for the reduction in the number of households in receipt of rent supplement; and if he will make a statement on the matter. [37625/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 109, 119 and 140 together.

The Value for Money examination undertaken by the Comptroller and Auditor General (C&AG) looked at the rent supplement scheme during 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 report focuses in particular on the increase in the level of rent supplements paid during this period as the main factor giving rise to the increase in expenditure. Other contributing factors include increases in the number of recipients and changes in household composition.

During the period of review my Department took measures to address increases in expenditure. For example in December 2002 limits were set on the amount of rent in respect of which rent supplements are paid. Rent supplement 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.

A conclusion arising from the C&AG report, and one I agree with which, is 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. A significant number of people have now come to rely on rent supplementation for extended periods, including people on local authority housing lists. For this reason, the scheme has to be viewed in the context of overall 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 a 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, a new public / private partnership type rental accommodation scheme.

According to recent information from the Department of the Environment Heritage and Local Government, to date over 12,000 rent supplement cases have been reviewed, almost 1,900 properties inspected and some 2,000 cases transferred to RAS. An additional 1,500 rent supplement households have also been allocated local authority housing.

I have not set any targets for reductions in the number of households in receipt of rent supplement. The Government's targets in this area relate to increasing the supply of social and affordable housing, including the full implementation of the RAS. When the new rental assistance arrangements have been fully implemented I expect that in excess of 30,000 individuals will have transferred from the rent supplement scheme to the local authorities under RAS and other social housing schemes.

A study has been commissioned from Goodbody Economic Consultants to examine the potential of supplementing home ownership specifically among the client base that comes within the rent supplementation arrangements. The study was aimed at identifying possible viable alternative approaches meeting housing needs for long-term rent supplement recipients. People in this category are primarily dependent on social welfare or health service executive payments and would not be in position to purchase private property at going market rates. The work is nearing completion and I understand that the group are finalising their draft report.

In addition to this current study, a fundamental review of all aspects of the supplementary welfare allowance scheme, including the rent supplement scheme has been undertaken as part of my Department's series of Expenditure Reviews. The review process is now completed and following its presentation to Government I would propose to publish a report on the findings of the review in the coming weeks.