Deirdre Clune (Cork South Central, Fine Gael)
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Question 385: To ask the Minister for Social and Family Affairs if he will reconsider the level of supplementary welfare allowance payable to persons seeking assistance with rent payments in the Cork area as rents have increased in the area and the level of payment at present does not meet the needs of many tenants; and if he will make a statement on the matter. [14416/08]

Martin Cullen (Waterford, Fianna Fail)
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Rent supplement, which is administered on my behalf by the Health Service Executive (HSE) as part of the supplementary welfare allowance scheme, is subject to a limit on the amount of rent that an applicant may incur. Rent limits are set at levels that enable 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, 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, including Cork.

Notwithstanding existing limits, the HSE may exceed these rent 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

I have arranged to have the current rent limits reviewed this year with a view to implementing any revision found to be necessary, from 1 July 2008. As in 2007, a consultative approach is being used to conduct this review.