Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 88: 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 the consultation period will 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. [7909/07]

Séamus Brennan (Dublin South, Fianna Fail)
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The purpose of rent supplement under the supplementary welfare allowance scheme is to provide short-term income support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source.

In recent years the numbers claiming the supplement have grown considerably from 42,683 in 2000 to 59,861 at the end of December 2006 with corresponding scheme expenditure rising from €151m to €389m in the same period. The scheme has also witnessed an increase in the duration of entitlement with over 30,000 recipients now getting a supplement for 18 months or more. While a broad range of housing supports are provided by local authorities, including the more recent Rental Accommodation Scheme, aimed exclusively at those on rent supplement for more than 18 months and regarded as having long-term housing need, I am anxious that all avenues are explored to provide financial support for any people on long-term rent supplementation who may be in a position to purchase their own home.

In this regard a study was 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, overseen by officials from my Department and the Department of the Environment Heritage and Local Government, was aimed at identifying possible viable alternative approaches to meeting housing needs for long-term rent supplement recipients. These would be in addition or complimentary to the range of social housing options currently provided for by the Department of Environment, Heritage and Local Government through local government initiatives. People in this category are primarily dependent on social welfare payments and would not be in position to purchase private property at going market rates.

Since initiating the study, a number of significant developments have been announced including improvements to the rent supplement scheme in Budget 2007 which —

allow for the continuation of rent supplement to qualified persons moving into full-time employment while local authorities are sourcing accommodation under the Rental Accommodation Scheme (RAS), and

an improvement in the disregards applying to additional income in the assessment of means for rent supplement purposes. At present up to €60 and 50% of additional income between €60 and €90 is disregarded in the assessment of means for rent supplement purposes. I am providing for the necessary legislative provisions to give effect to these Budget improvements in the Social Welfare and Pensions Bill currently before the House.

Another development includes proposals by the Minister for the Department of Environment Heritage and local Government to introduce an 'incremental purchase' scheme for social housing tenants and prospective tenants based on the development of the 'shared equity' concept whereby tenants would be allowed to use their rental payments to build up an equity stake in a local authority house in an incremental fashion in return for paying a premium on the rent and taking over responsibility for the maintenance of the dwelling. The objective is to make it possible for households with incomes substantially lower than for affordable housing to start on the path to home ownership. This scheme is outlined in the recent Statement on Housing Policy "Delivering Homes and Sustaining Communities."

The findings of the draft report are being considered having regard to the range of initiatives in the area of housing policy generally and taking on board these latest improvements. While I will be examining the report, it is not my intention that the rent supplement scheme as it is currently framed will be changed.