Róisín Shortall (Dublin North West, Labour)
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Question 272: To ask the Minister for Social and Family Affairs when, in view of the continuing rise in rents, he will improve the maximum rents available to rent supplement recipients. [5442/08]

Martin Cullen (Waterford, Fianna Fail)
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Rent supplement is administered on my behalf by the Health Service Executive as part of the supplementary welfare allowance scheme. Rent supplement is subject to a limit on the amount of rent that an applicant may incur. Rent limits are set at levels that enable the different eligible household types to secure and retain basic suitable rented accommodation, having regard to the different rental market conditions that prevail in various parts of the State. The objective is to ensure that rent supplement is not paid in respect of overly expensive accommodation having regard to the size of the household.

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, including people in low-wage employment. In January 2007 a review was completed of the maximum levels of rent which a person may incur and still be eligible to receive rent supplement. The purpose of the review was to inform the process of setting new limits, applicable from January 2007 until 30 June 2008. The review included consultation with the HSE, the Department of Environment, Heritage and Local Government, the Central Statistics Office, the Private Residential Tenancies Board and voluntary agencies working in this area. This process ensures that the new rent limits reflect realistic market conditions throughout the country. Arising from the review, rent limits were adjusted upwards, from January 2007, for a number of household types in 14 counties.

I intend to have rent limits reviewed this year with a view to implementing any revision found to be necessary from 1 July 2008. A consultative approach will be used to conduct this review. Notwithstanding existing rent limits, the Health Service Executive may exceed these limits in certain circumstances, e.g. where there is special housing need related to exceptional circumstances. The discretionary power ensures that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness.