Róisín Shortall (Dublin North West, Labour)
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Question 327: To ask the Minister for Social and Family Affairs when the new changes in rent supplement ceiling are expected; the changes envisaged; and if she will make a statement on the matter. [21058/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Rent supplement is administered on behalf of the Department, by the Health Service Executive (HSE) 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.

Notwithstanding these limits, under existing arrangements the HSE may, in certain circumstances, exceed the rent limits. This discretionary power ensures that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness.

The current rent limits were set in January 2007. A review of rent limits is currently being undertaken. A consultative process is being used to ensure that the views of all relevant parties are sought and taken into account in the process. This includes 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 helps ensure that the new rent limits reflect realistic market conditions throughout the country. As the review is still underway, no decisions have been made regarding what changes may be necessary. Any adjustments to rent limits, resulting from this review, will be effective from 1 July 2008.