Richard Bruton (Dublin North Central, Fine Gael)
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Question 258: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the contrast in the treatment of extra income earned by a low paid person on a differential rent compared to a person on rent supplement, whereby on differential rent, a contribution of 15% of the extra income is made, whereas on rent supplement 100% of the extra income is lost in reduced payments; his views on revising the rent accommodation scheme to set a more realistic rent ceiling to apply for eligibility and to reduce the requirement of 18 months on supplement before eligibility applies; and if he will make a statement on the matter. [2792/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Under the Rental Accommodation Scheme (RAS) households pay a contribution towards their rents to the local authority. The level of contribution is determined by the local authority by reference to each authority's Differential Rent Scheme, and will vary from authority to authority. Over time this contribution will vary to take into account changes in the income and family circumstances of the household concerned.

Arrangements regarding the treatment of extra income under the Rent Supplement scheme are a matter for the Minister for Social and Family Affairs and I am advised that those in receipt of additional income can discount the first €75 of eligible additional income and 25% of any such income in excess of €75, for rent supplement purposes.

The level of rents payable is determined by negotiations between the landlord and the local authority, taking account of rent supplement levels and local market conditions. The setting of rent limits under the Social Welfare Allowance scheme is a matter for the Minister for Social and Family Affairs and his Department is currently reviewing levels of rent limits to determine what limits should apply from July 2008 onwards. My Department will contribute to the review.

A Value for Money and Policy Review is currently underway specifically to evaluate the operation of RAS in light of the objectives set for it and the arrangements under which it operates. The review is expected to be completed in April. Under current arrangements local authorities have discretion to transfer tenants to RAS who are less than eighteen months on rent supplement, when they are assessed as having a long-term housing need.