Written answers

Wednesday, 11 November 2009

Department of Social and Family Affairs

Social Welfare Code

9:00 am

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 76: To ask the Minister for Social and Family Affairs if she will review the efficacy of rent allowance and mortgage support with particular reference to the need for early and positive intervention when families have been affected by income reductions, unemployment or illness; if she will ensure that adequate staff are redeployed as required within the sector with a view to eliminating delays and waiting lists; and if she will make a statement on the matter. [40701/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs. The supplementary welfare allowance scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department.

The purpose of the rent supplement scheme is to provide short-term 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 over 91,500 people in receipt of rent supplement of which almost 33,000 are getting a supplement for 18 months or more. The number of rent supplement recipients has increased by 24% since the end of December 2008.

Similarly, mortgage interest supplement provides short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently just over 14,500 people in receipt of mortgage interest supplement, a 79% increase on the numbers receiving the supplement at the end of December 2008.

Significant improvements have been made to the means test for rent and mortgage interest supplement in recent years. The assessment of means now 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 rent or mortgage interest supplement subject to their satisfying the standard means assessment rules while those accepted as eligible for accommodation under Rental Accommodation Scheme (RAS) may to return to full-time work, also subject to a means test, without losing the entire rent supplement payment. These measures are positive steps in assisting tenants to meet their housing needs while also increasing the financial return for those returning to work or moving to full-time employment.

In recent years, a significant number of people have come to rely on the rent supplement scheme for extended periods. The scheme was not designed to meet long-term ongoing housing needs. The Rental Accommodation Scheme (RAS), operated by local authorities, provides access to a range of long-term good quality housing supports for those availing of the scheme. Details of people in receipt of rent supplement for 18 months or more are notified to the local authorities for inclusion in the scheme.

Over 12,260 tenants have been transferred from the rent supplement scheme to RAS since 2005 and an additional 10,630 were provided with social housing following their assessment for RAS.

A review of the administration of the mortgage interest scheme is progressing. The main purpose of the review is to examine how the 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. The full review should be completed in early 2010.

Overall, I am satisfied that the current rent and mortgage interest supplement scheme provides an adequate short-term "safety net" within the overall social welfare system to ensure that people do not suffer hardship due to loss of employment or illness. Nonetheless, I intend to keep the schemes under review to ensure that they meet the objective of catering for those who require assistance on a short-term basis while long-term housing needs are dealt with in a more appropriate manner.

The issue of increased demand that may arise on existing resources is a matter for the HSE in the first instance to prioritise workloads and re-deploy resources where necessary so that frontline services are maintained. The question of any increase in expenditure for staffing within the community welfare service above that currently provided would have to be considered in the context of overall Government policy on public service manpower levels.

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