Seán Sherlock (Cork East, Labour)
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Question 133: To ask the Minister for Social and Family Affairs his plans to alter the conditions of rent supplement in order that those in receipt of that benefit who are eligible for the rental accommodation scheme can avail of a differential rent scheme while they wait to be offered RAS accommodation. [5236/08]

Jim O'Keeffe (Cork South West, Fine Gael)
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Question 168: To ask the Minister for Social and Family Affairs his views on altering the rent allowance payment to facilitate people returning to work and the true costs incurred in doing same; and if he will make a statement on the matter. [5031/08]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 133 and 168 together.

The programme for Government includes commitments to reduce long-term reliance on rent supplement. This will be done mainly by keeping the standard means test for rent supplement under review to provide enhanced financial incentives for people taking up employment and providing long-term housing solutions under the rental assistance scheme. Significant changes to the means test were introduced in 2007 specifically to facilitate people returning to work. If a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This improvement in the assessment of means for those with income from employment applies to all rent supplement recipients who are engaged in employment of less than 30 hours per week. It also applies to those returning to full-time employment and accepted as eligible for accommodation under the rental accommodation scheme. These measures ensure that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity. It is estimated that the gross annual cost of this provision is approximately €5.2 million.

I consider that the current eligibility thresholds, income disregards and associated arrangements ensure that people have a financial incentive to take up employment opportunities. It is not necessary to implement a differential rent scheme assessment to ensure they have a financial incentive to take up work. It is preferable that those on rent supplement, who are accepted as eligible for the rental accommodation scheme, must continue to satisfy the qualifying conditions of the rent supplement scheme, in common with other rent supplement recipients. However, when such claimants transfer to the rental accommodation scheme they may avail of the differential rent assessment, where appropriate. I intend to keep the rent supplement scheme under review. My Department will work closely with the Department of the Environment, Heritage and Local Government to ensure the rental accommodation scheme meets its objective of catering for those on long-term rent supplementation, while enabling rent supplement to return to its original role of a short-term income support.