Gay Mitchell (Dublin South Central, Fine Gael)
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Question 161: To ask the Minister for Social and Family Affairs if the rates allowed for rental properties for persons in receipt of rent supplement are to be reviewed; when the revised rates will come into effect; and if he will make a statement on the matter. [8086/07]

Séamus Brennan (Dublin South, Fianna Fail)
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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 depending on household size, on the amount of rent that an applicant for rent supplement may incur. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation. Notwithstanding these limits, under existing arrangements the Health Service Executive may, in certain circumstances, exceed the rent levels as an exceptional measure, for example: where there are special housing needs related to exceptional circumstances such as disabled persons in specially-adapted accommodation or homeless persons; where the tenant will be in a position to re-assume responsibility for his/her rent within a short period; and where the person concerned is entitled to an income disregard and has sufficient income to meet his or her basic needs after paying rent, taking into account the appropriate rate of rent supplement that is otherwise payable in the case.

This discretionary power ensures that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness. In November 2002, when the Central Statistics Office Privately Owned Rent Index first showed evidence of continued reductions in rent levels, regulations were introduced to set the maximum amount of rent in respect of which a rent supplement is payable. These limits remained in place to the end of December 2003. Further Regulations were introduced in December 2003 and July 2005 to prescribe the limits to be used up to December 2006.

My Department recently completed a review of the rent limits in order to determine if the existing maximum rent limits required any adjustments. The review took account of prevailing rent levels in the private rental sector generally, together with detailed input from the Health Service Executive on the market situation within each of its operational areas. The review also included consultation with the Department of the Environment, Heritage and Local Government and the Private Residential Tenancies Board. In addition, a number of the voluntary agencies working in this area made detailed submissions. This process is designed to 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 recently introduced new Regulations setting rent limits for the period 26 January 2007 to 30 June 2008. These new Regulations provided for moderate increases in certain rent limits with no change in others — no rent limit was reduced. I am arranging for details of the new rent limits to be forwarded to the Deputy.