Deirdre Clune (Cork South Central, Fine Gael)
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Question 22: To ask the Minister for Social and Family Affairs if her attention has been drawn to the difficulty experienced by rent supplement claimants in negotiating reductions in rental rates; the support she will provide to tenants who have been unable to negotiate a new rental rate and are contractually obliged to pay rent agreed in their lease; and if she will make a statement on the matter. [23260/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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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 payable 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. Other changes in the Supplementary Budget provided that new maximum rent limits apply to all new claimants, from 1 June 2009, to reflect the general reductions in private sector rent levels.

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

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. Given prevailing rental market trends and availability of rental properties, landlords were asked in the advertising to respond positively to tenants who present the Department's letter seeking a reduction in rent. A number of organisations representing landlords and tenants were contacted and advised of the changes to the rent supplement scheme.

Under the Residential Tenancies Act 2004, once a tenancy is at least a year old and where the rent has not been reviewed for twelve months, the tenant is entitled to ask a landlord to review the rent in payment where the tenant feels that the rent exceeds the market rate for the property. 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. In this climate, it is expected that people should be able to source alternative accommodation at the appropriate rental level if a landlord is unwilling to reduce the rent in any particular case.

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

Seán Sherlock (Cork East, Labour)
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Question 23: To ask the Minister for Social and Family Affairs the outcome of her review of mortgage interest supplement. [23287/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The mortgage interest supplement scheme is designed to help those who have difficulty meeting their mortgage repayment schedule where their means are insufficient to meet their needs. The scheme provides a short-term "safety net" within the overall social welfare scheme to ensure that people do not suffer hardship due to loss of employment.

A supplement may be paid in respect of mortgage interest only to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence.

There are currently 12, 900 people in receipt of mortgage interest supplement, an increase of 213% over the number in payment at end 2007.

The assessment for the existing mortgage interest supplement scheme provides for a gradual withdrawal of payment as hours of employment or earnings increase. Those availing of part-time employment and/or training opportunities can continue to receive mortgage interest supplement subject to their satisfying the standard means assessment rules.

The current review of the administration of the mortgage interest supplement scheme is progressing. The main purpose of the review is to consider how the mortgage interest supplement scheme can best meet its objective of catering for those who require assistance on a short-term basis, where they are unable to meet mortgage interest repayments on their sole place of residence. Legislative and operational issues arising in the existing mortgage interest scheme are being examined, including the cap on hours of employment.

The views of the community welfare service and other interested parties are currently being canvassed as part of the review. In the interim, updated guidelines on the operation of the existing mortgage interest supplement scheme have issued to community welfare service staff. The full review should be completed and a final report available by the end of 2009.