Written answers

Thursday, 5 March 2009

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 48: To ask the Minister for Social and Family Affairs the criteria by which she is judging the affordability of rent for persons on rent supplement; and the savings she will make on expenditure on rent supplement. [9271/09]

Photo of Mary HanafinMary 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.

The purpose of the rent supplement scheme is to provide short-term income support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. There are currently nearly 80,000 people in receipt of rent supplement, an increase of 34% since the end of December 2007.

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 types of eligible households 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.

The maximum rent which a person may incur and still qualify for rent supplement is prescribed in regulations. These regulations are time limited so that they can be adjusted in light of rent levels generally and the wider economic climate. Regulations which covered the period 1st January 2007 to 30th June 2008 were reviewed in mid 2008 and the existing rent limits were extended to 31 December 2009, subject to review in early 2009.

Rent limits are currently being reviewed in the light of reductions in rent levels in 2008. In testing the level at which basic accommodation can be secured, the Department is informed by analysis of data on rent supplement tenancies, data provided by the Private Residential Tenancies Board on tenancies registered by them and submissions by interested statutory and non statutory bodies including the Department of Environment, Heritage and Local Government. The review will also be informed by the latest Private Rented Index report to be published by the CSO in mid March 2009. Estimates of expenditure on the rent supplement scheme in 2009 will be reviewed in the light of the outcome of the rent limits review.

The rent limits prescribed in regulations are maximum limits. The Health Service Executive has flexibility to award rent supplement above or below rent limits, having regard to local rent levels or to meet the particular needs of an individual. These discretionary powers ensure that individuals with particular needs can be accommodated within the scheme and specifically protects against homelessness.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 51: To ask the Minister for Social and Family Affairs when she will change the rules for the back to education allowance to allow jobseeker's to qualify before they become long-term unemployed. [9277/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The back to education allowance (BTEA) scheme is designed to help those in receipt of a social welfare payment who have not worked for some time to improve their employability and job-readiness by acquiring educational qualifications. It is in recognition of the special difficulties which such persons can face when attempting to gain a foothold in the labour market.

The back to education allowance (BTEA) is a second chance education opportunities scheme designed to remove the barriers to participation in second and third level education. It encourages and facilitates people on certain social welfare payments to improve their skills and qualifications and, therefore, their prospects of returning to the active work force. The scheme enables qualified people who have been getting a social welfare payment to continue to receive a payment while pursuing an approved full-time education course.

To qualify for participation an applicant must be in receipt of a relevant social welfare payment and be at least 21 years of age prior to commencing an approved course of study. However, lone parents and persons in receipt of unemployment payments can qualify at 18 years of age provided they are out of formal education for at least 2 years. In general, an applicant must be in receipt of a relevant Social Welfare payment for 6 months if pursuing a second level course or 12 months if pursuing a third level course.

In order to support activation of unemployed people, the qualifying period for access to the third level option has been reduced to 9 months for persons who are participating in the National Employment Action Plan (NEAP) process, where a FÁS Employment Services Officer recommends pursuance of a third level course of study as essential to the enhancement of the individual's employment prospects.

In addition people who are awarded statutory redundancy may access the scheme immediately, provided an entitlement to a relevant social welfare payment is established prior to commencing an approved course of study.

The requirement to be in receipt of a relevant social welfare payment for a minimum period has always been a feature of the back to education scheme. A waiting period is considered essential to confer entitlement to income support for an indefinite period and is considered necessary in the context of targeting scarce resources at those who need it most.

The back to education scheme has been subject to review and modification over the years to ensure that it continues to assist those furthest from the labour market. The qualifying conditions will continue to be monitored in the context of the objectives of the scheme and the changing economic circumstances.

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