Written answers

Thursday, 25 June 2009

Department of Social and Family Affairs

Social Welfare Benefits

7:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 18: To ask the Minister for Social and Family Affairs her views on whether the free broadband for older people as set out in the programme for Government will proceed; and if she will make a statement on the matter. [24082/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The Programme for Government includes a commitment to expand the current free telephone rental scheme by providing for free broadband for older people. The Department is examining how best to implement this commitment. As a first step it has been agreed that where people access the internet using a landline, the telephone allowance can be used to cover the cost of calls or internet usage up to the level of their allowance. In addition if a person wishes to subscribe to a bundled package for telephone and internet, the telephone allowance can be applied to this package.

The telephone allowance is a component of the household benefits package which also includes the electricity/gas allowance and free television license schemes. The package is generally available to people living in the State, aged 66 years or over who are in receipt of a social welfare payment or who satisfy a means test. It is also available to people aged under 66 who are in receipt of certain social welfare disability payments or carer's allowance. In 2008, over 370,000 people received the household benefits at a cost of €340 million.

The primary objective of the telephone allowance scheme is to ensure that vulnerable people have access to help in an emergency and to provide an element of security. A secondary objective is to encourage social contact and to assist in the prevention of social isolation for those living alone.

The Department will continue to keep this issue under review and consideration will be given to expanding access for older people to broadband as the opportunity arises.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 20: To ask the Minister for Social and Family Affairs the measures being taken to ensure that persons who have experienced a reduction in their rent supplement are availing of lower rents; and if she will make a statement on the matter. [23144/09]

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Question 24: To ask the Minister for Social and Family Affairs the flexibility available to a community welfare officer not to impose an 8% reduction in rent supplement to tenants in existing tenancies. [23284/09]

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 53: To ask the Minister for Social and Family Affairs the evidence he has to demonstrate that rents have fallen in urban areas for persons availing of the rent supplement; and if she will make a statement on the matter. [23145/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 20, 24 and 53 together.

There are currently almost 88,800 people in receipt of rent supplement, an increase of 49% since the end of December 2007. The recent Supplementary Budget provided that the weekly minimum contribution towards rent be increased from €18 to €24 a week, with effect from 1 June 2009. It also provided that payments currently being made to existing rent supplement tenants be reduced by 8% from the same date. While tenants may be contractually obliged to pay the rent agreed to in their lease, it is expected that landlords will decrease the rent in recognition of the fact that rents have fallen generally and that there are now a large number of vacant rental properties nationally.

The most recent data published by the CSO shows that rents in the private sector have fallen by almost 11% since November 2008 and by almost 20% in the past year. A leading property website also reported recently that rents had fallen by almost 16% in the twelve months to March 2009 and that in the same period rents in all major urban areas had fallen, ranging from a fall of 10% in Galway, 15% in Cork and between 12.5% and 18% in Dublin.

It is essential that state support for tenants who form a substantial section of the rental market, does not give rise to inflated rental prices.

Other changes in the Supplementary Budget provided for new maximum rent limits to take effect from 1 June 2009, to reflect the general reductions in private sector rent levels.

Existing recipients of rent supplement were advised by letter in advance of the change being made to their rent payment from 1 June 2009 and this communication can be shown to landlords as evidence of the revised rent supplement in payment in individual cases. Landlords were advised through advertising in national and provincial newspapers of the general reduction in rent supplement payments. A number of organisations representing landlords and tenants were also contacted and advised of the changes to the rent supplement scheme.

In the current climate, where there is a large number of vacant rental properties, it is expected that people should be able to get accommodation at the appropriate rental level.

Community Welfare Officers have discretion to provide assistance where exceptional circumstances exist in any individual case. Officers have also been advised that support, appropriate to the circumstances of the particular case, may be provided to rent supplement tenants for up to two months, where alternative accommodation is being sourced within the existing rent limits.

The Department is also in discussions with the Department of the Environment, Heritage and Local Government regarding the role of local authorities who are responsible for providing a wide range of social housing supports for those with a long-term housing need.

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