Written answers

Tuesday, 2 November 2010

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 79: To ask the Minister for Social Protection his plans, if any, to reform the withdrawal rate for rent and mortgage interest supplement. [40044/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, 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. 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.

Significant improvements to the means test for rent supplement and mortgage interest supplement were implemented in 2007. The assessment of means for these schemes 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 a rent or mortgage interest supplement subject to their satisfying the standard means assessment rules. Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity.

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