Jan O'Sullivan (Limerick East, Labour)
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Question 119: To ask the Minister for Social and Family Affairs the details of the new maximum rent supplement amounts. [8926/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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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. The scheme primary purpose is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.

There are currently almost 93,200 tenants benefiting from a rent supplement payment. The total cost of rent supplement for 2009 was €511m.

Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may incur. Rent limits are set at levels that enable different types of eligible households to secure and retain basic suitable rented accommodation, having regard to 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 and market conditions. Furthermore, it is essential that state support for tenants does not give rise to inflated rental prices and overcharging by landlords.

Setting or retaining maximum rent limits at a higher level than are justified by the open market can have a distorting effect on the rental market, leading to a more general rise in rent levels and in landlord income. This in turn may worsen the affordability of rental accommodation unnecessarily, with particular negative impact for those tenants on lower incomes who are trying to support themselves without state aid.

A review of maximum rent supplement levels is in process and will be completed by 31st of March 2010. Preliminary findings of this review confirm that rent levels have dropped significantly and continuously since their peak in 2007 giving further scope for reductions for rent limits. The Review details will be provided in due course.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 121: To ask the Minister for Social and Family Affairs if she will make a statement on the increase in the numbers of persons claiming family income supplement; if her attention has been drawn to the fact that many public servants, who have experienced a reduction in pay due to the recent budget cuts, have been put in a position where their income is now so low they become eligible for family income supplement. [8675/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Family Income Supplement (FIS) is designed to provide support for people with families who are on low earnings, regardless of their occupation. Besides providing valuable financial support to such families, FIS preserves the incentive to remain in employment in circumstances where families might be only marginally better off than if they were claiming other social welfare payments.

FIS is calculated on the basis of 60% of the difference between the income limit for the family size and the net income of the person(s) raising the child (ren). Net income, for FIS purposes, comprises total family income less tax, employee PRSI, health contribution, income levy, and superannuation contribution. The public service pension levy, where this is payable, is also deductible from income when calculating net income for the purposes of eligibility to FIS.

In 2009, the Department received 46,542 new and renewal FIS claims compared to 42,940 in 2008 and 37,861 in 2007 - an increase of over 8% on 2008 and over 22% on 2007.

There are currently some 26,081 people in receipt of a weekly FIS payment of which 11% are public servants. The Department has received an increased number of applications for FIS from public servants since the beginning of this year, compared to 2009. However, it is difficult to quantify at present what the increase in the overall number of public servants in receipt of FIS will be, resulting from this increase in applications.

The actual numbers of public servants becoming eligible for FIS in future will be influenced by several factors. These factors include increased remuneration for public sector workers through annual increments, increases or reductions in the number of qualified children and any changes in working hours/patterns due to work sharing/family friendly arrangements.