Written answers

Tuesday, 20 April 2010

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 75: To ask the Minister for Social and Family Affairs the number of persons claiming rent supplement for more than 18 months [15474/10]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 85: To ask the Minister for Social and Family Affairs the discussions he has had with the Department of the Environment, Heritage and Local Government regarding a faster transfer of applicants from rent supplement to the rental accommodation scheme. [15373/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 75 and 85 together.

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 overall aim 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 95,000 tenants benefiting from a rent supplement payment - an increase of over 57 per cent since the end of 2005. Over 37,800 have been in payment for 18 months or more.

The rental accommodation scheme (RAS), which was introduced in 2004, gives local authorities specific responsibility for meeting the longer term housing needs of people receiving rent supplement for 18 months or more. Details of these cases are notified regularly by the Department to the local authorities. Local authorities meet the housing needs of these individuals through a range of approaches including the traditional range of social housing options, the voluntary housing sector and, in particular, the RAS.

Latest figures from the Department of the Environment, Heritage and Local Government show that a total of 25,623 transfers from rent supplement to local authorities have occurred since 2005: 13,860 rent supplement cases to the RAS and a further 11,763 recipients to other social housing options.

It is accepted that progress in relation to RAS was initially slower than expected. However the pace of delivery has improved significantly. In total, 14,000 recipients were transferred in 2008 and 2009, achieving targets set for RAS transfers for these years. The target established for 2010 is for a further 8,000 rent supplement tenants to be provided with a housing solution by local authorities.

In consultation with this Department, the Department of the Environment, Heritage and Local Government has approved a number of pilot programmes in different local authorities to increase the flow of transfers. These include allowing applicants for RAS to seek out their own properties which, subject to compliance with the normal conditions and the agreement of the landlord, may then be taken into the leasing programme. Approved housing bodies under the leasing initiative have also been advised that they can seek applicants for social housing support directly from households in long term receipt of rent supplement as part of a of choice-based lettings approach to allocations.

The Department continues to work closely with the Department of the Environment, Heritage and Local Government and is represented on a number of RAS implementation groups. The purpose of these Groups is to ensure that the RAS meets its objective of catering for those on long term rent supplementation while enabling rent supplement to return to its original role of a short-term income support.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 76: To ask the Minister for and Family Affairs the details of the review of the mortgage interest supplement scheme; the changes envisaged under this review; and if he will publish this report [15420/10]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 80: To ask the Minister for Social and Family Affairs his plans to reform mortgage interest supplement. [15391/10]

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 94: To ask the Minister for Social and Family Affairs the number of persons in receipt of mortgage interest supplement; the cost of same; and if he will arrange for the collection of figures on the number of persons who apply for mortgage interest supplement [15426/10]

Photo of P J SheehanP J Sheehan (Cork South West, Fine Gael)
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Question 102: To ask the Minister for Social and Family Affairs his plans to amend the mortgage interest supplement scheme; and if he will make revised guidelines publically available [15479/10]

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 113: To ask the Minister for Social and Family Affairs if, in view of the reduction of the amount spent by his Department on mortgage interest supplements, he will use his position to influence the banking sector to require more banks to allow persons in financial difficulty to make borrowed sum only repayments rather than interest only repayments for the duration of those difficulties in view of the fact that over the long term the application of interest only repayments places a greater financial burden on the mortgagee and by extension potentially on the State via the payment of mortgage interest supplements. [15492/10]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 718: To ask the Minister for Social and Family Affairs if his Department has concluded its report on mortgage interest supplement; if not, the reason for the delay; and if the report has been published. [15724/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 76, 80, 94, 102, 113 and 718 together.

The purpose of the mortgage interest supplement scheme is to provide short term support to people who have difficulty meeting their mortgage repayments due to changes in their employment circumstances and whose means are now inadequate to meet their basic day to day needs. The scheme, working within the overall social welfare framework, aims to ensure that people do not suffer unnecessary hardship due to loss of employment and that, in the short term, they can retain their home whilst unemployed. Mortgage interest supplement is a means tested payment with other qualifying criteria applying and it only covers the mortgage interest payments in respect of an eligible person's home.

There are currently just over 16,100 people in receipt of mortgage interest supplement, compared to 8,091 recipients in 2008, a doubling of the recipients in the last two years. Expenditure for the year ending December 2009 was €60.7m; the estimate for 2010 is €63.9m.

Generally, all applications for mortgage interest supplement are recorded electronically. However, as this practice can vary across community welfare areas, full statistics for the number of people who applied for mortgage interest supplement are not available. Community welfare officers have been reminded to record the details of receipt and status of all claims electronically. However, requests to change operational procedures must be viewed in the context of the increased demands being placed on community welfare officers in the current economic environment.

The main purpose of the mortgage interest supplement review is to examine how the scheme can best meet its objective of catering for those who require assistance on a short-term basis. The review group includes representatives from my Department, the Community Welfare Service, the Departments of Finance and Environment, Heritage and Local Government, together with a representative from the Office of the Financial Regulator.

As part of the initial review, guidelines on specific and immediate operational issues were drawn up and circulated to the community welfare officers. These guidelines are available on the Department's website at www.welfare.ie

The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory Code of Practice on Mortgage Arrears and legislative and operational issues arising, including the cap on hours of employment.

The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in the light of recent changes in the economic climate and the mortgage market. The conclusions and recommendations from the review, which are currently being finalised, will inform the work Interdepartmental Mortgage Arrears and Personal Debt Review Group.

The Interdepartmental Mortgage Arrears and Personal Debt Review Group under the independent Chairmanship of Mr. Hugh Cooney, comprises representatives from my own Department, the Departments of Finance, Taoiseach, Environment, Heritage and Local Government, Justice, Equality and Law Reform, Communications, Energy and Natural Resources and Social and Family Affairs. In addition the Group has representatives from the office of the Financial Regulator, the ESRI, the Irish Banking Federation, the Free Legal Advice Centre and the Law Reform Commission.

The terms of Reference for the Group are based on the Renewed Programme for Government, with an emphasis on protecting the family home, and include further review of the existing statutory Code of Conduct on Mortgage Arrears which include alternative repayment measures, the recently agreed protocol between the Irish Bankers Federation and the Money Advice and Budgeting Service on debt default with a view to expanding the options available for dealing with debt situations, including the use by banks and lenders of more flexible mechanisms to avoid foreclosure in appropriate circumstances. In addition, the Group will examine measures adopted in other jurisdictions and consider ways of expanding existing mortgage-support measures.

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