Bernard Durkan (Kildare North, Fine Gael)
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Question 85: To ask the Minister for Social and Family Affairs the steps he proposes to take to alleviate hardship to recipients of rent allowance whose rent has increased and who are expected to make up the shortfall from their own resources; and if he will make a statement on the matter. [26241/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 347: To ask the Minister for Social and Family Affairs if he will increase rent allowances in line with recent rent increases thereby eliminating hardship for those dependant on rent support; and if he will make a statement on the matter. [26643/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 348: To ask the Minister for Social and Family Affairs the reason for the freezing of rent allowances which is causing hardship to recipients of rent support; and if he will make a statement on the matter. [26644/07]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 85, 347 and 348 together.

The purpose of the rent supplement scheme is to provide short-term income support, in the form of a weekly or monthly payment, 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. Rent supplements are subject to a means test. They are normally calculated to ensure that, after payment of rent, an eligible person has income equal to the rate of basic supplementary welfare allowance appropriate to their family circumstances, less a minimum contribution, currently €13, which each recipient is required to pay from his or her own resources. Many recipients pay more than €13 because recipients are also required to contribute any additional assessable means that they have over and above the appropriate basic supplementary welfare allowance rate towards their accommodation costs.

Rent supplement is also subject to a limit on the amount of rent that an applicant for rent supplement may incur. These rent limits, provided for in Regulations, are set at levels that enable the different categories of eligible tenant households to secure and retain basic suitable rented accommodation, having regard to the different rental market conditions that prevail in various parts of the State. 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 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

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

This discretionary power ensures that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness.

In January 2007 my Department completed a review of the maximum levels of rent which a person may incur and still be eligible to receive a rent supplement. The purpose of the review process was to ensure that the new rent limits, applicable from January 2007, reflect realistic market conditions throughout the country, and that they would continue to enable the different categories of eligible tenant households to secure and retain basic suitable rented accommodation to meet their respective needs. The existing limits are applicable from January 2007 until 30th June 2008.

The review involved a broad consultation process and 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.

There are currently over 58,700 rent supplements in payment of which 23,819 have been awarded since the current rent limits were set in January 2007. These statistics show that rented accommodation is available within the current rent limits. In that regard, I do not intend to amend the existing limits. All limits will be reviewed again next year and any revision found to be necessary will be implemented from 1st July 2008 following expiry of the current limits.

Billy Timmins (Wicklow, Fine Gael)
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Question 86: To ask the Minister for Social and Family Affairs his views on transferring the administration of the blind welfare allowance to his Department; and if he will make a statement on the matter. [26191/07]

Martin Cullen (Waterford, Fianna Fail)
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The decision to transfer certain functions from the Health Service Executive (HSE) to my Department follows on from recommendations made by the Commission on Financial Management and Control Systems in the Health Service. In its report, the Commission noted that over the years, the health system had been assigned responsibility for a number of activities that are non-core in the context of a health service. In view of the range of challenges facing the health sector, it recommended that the Government consider assigning such non-core activities to other bodies.

The Government considered this issue early last year and has decided to transfer certain functions. The functions to be transferred include the General Register Office and various payments, including supplementary welfare allowances and payments made to or in respect of persons with a disability, namely, domiciliary care allowance, child respite care grant paid with domiciliary care allowance, mobility allowance, infectious diseases maintenance allowance and blind welfare allowance. Detailed proposals for the transfer of dental, optical and other treatment benefits from my Department to the health sector are also being developed.

As part of the National Disability Strategy, my Department has produced a Disability Sectoral Plan which was laid before the Houses of the Oireachtas on 21 July 2006. The objective of my Department's plan is to ensure that, as far as is practicable, the schemes and services provided to people with disabilities operate in a manner which facilitates their full participation in society and meet the mainstreaming principle of the equality agenda. In this regard, the Sectoral Plan takes account of the Government decision to transfer certain functions activities from the Health Service Executive (HSE) to my Department.

I am satisfied that the transfer of these income support and maintenance payments related to disability, such as the blind welfare allowance, allows for their administration within the mainstream income support framework and that this is consistent with the principle of mainstreaming supports for people with disabilities and the National Disability Strategy. This will result in a better service for people on Blind Welfare Allowance.

Incorporating the blind welfare allowance and other disability related payments identified for transfer within the social welfare framework will require amending legislation and I intend to provide for this in the context of the Social Welfare and Pension Bill 2008.