Deirdre Clune (Cork South Central, Fine Gael)
Link to this: Individually | In context

Question 360: To ask the Minister for Social and Family Affairs if he has plans to increase the cap on rent allowance in view of the fact that rents have increased by approximately 30% to 40% and it is very difficult to find suitable accommodation within the limits set by his Department; and if he will make a statement on the matter. [23334/07]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

The purpose of rent supplement is 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 supplement is subject to a limit on the amount of rent that an applicant for rent supplement may incur. These limits take household size into account. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation.

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. This in turn would worsen the affordability of rental accommodation unnecessarily, with particular negative impact for those tenants on lower incomes. 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, for example, 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

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 January 2007 a review of the maximum levels of rent which a person may incur and still be eligible to receive a rent supplement was completed. The purpose of the review was to inform the process of setting new limits, applicable from January 2007 until 30th June 2008. The review included consultation with the HSE, the Department of Environment, Heritage and Local Government, the Private Residential Tenancies Board and voluntary agencies working in this area. This process ensured 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. Arising from the review rent limits were adjusted upwards for a number of household types in 14 counties, including Cork.

There are currently over 58,600 rent supplements in payment and some 21,760 have been awarded since the current rent limits were set in January 2007. This shows that rented accommodation is available within the current limits. The limits will be reviewed next year. Any revision found to be necessary will be implemented from 1st July 2008.