Noel Grealish (Galway West, Independent)
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Question 276: To ask the Minister for Social Protection her plans to proceed with mandatory direct payment of rent supplement to tax compliant landlords in the interest of efficiency and combating fraud; if she will agree to meet with national representatives of buy-to-let investors to discuss the issue; and if she will make a statement on the matter. [11616/11]

Joan Burton (Dublin West, Labour)
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The purpose of rent supplement 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 is intended as a temporary income support payment and is not designed to be a medium to long term housing support or a permanent solution to a person's housing needs. Current legislation already provides for the making of a rent supplement payment to another person (e.g. a relative, a landlord or landlord's agent) on behalf of the recipient, at the tenant's request and is subject to the consent of the Community Welfare Service.

Approximately 20% of rent supplement payments are currently paid to a person other than the tenant. Under the legislative provisions governing rent supplement, the Department's relationship is with the tenant; the tenant makes the application for rent supplement and payment is made to the tenant. Rent supplement is specifically for the benefit of tenants to assist them with their accommodation needs.

Under the current arrangements, even with direct payment, landlords still have to collect the tenant contribution towards their rent (a minimum of €104 per month). The amount of rent supplement payable depends on the tenant's income; in some cases tenants pay only the minimum contribution while for others the tenant makes an additional contribution to their rent based on their financial circumstances. For example, where a person is in part-time income and receives just 10% of his or her rent directly from the State, the landlord would receive the 10% directly whilst still having to collect the 90% from the tenant. The efficiency of the scheme would be significantly affected if this arrangement were to be changed; for example, community welfare officers would potentially have to create a formal relationship with some 97,000 additional clients, the landlords. This would involve greater complexity and significant resources to deal with a new set of third parties. In particular, it would also result in community welfare officers being drawn into disputes between landlords and tenants.

There may also be financial and control implications in cases where a tenant moves address and neither the landlord nor tenant informs the Department. Similarly, where a tenant is no longer eligible for rent supplement and the Department ceases paying the landlord, the Department may find itself involved in eviction proceedings. The current arrangements provide tenants with flexibility in terms of location, the freedom to move to a different location whilst allowing recipients time to seek alternative long-term housing solutions provided by their local authority. The tailoring of additional payments, such as rent supplement, to meet the specific needs of individuals and making the payment direct to the tenant is regarded as an effective way of helping individuals realise their potential and take individual responsibility. To remove the right of the tenant to receive this payment by making it payable only to the landlord would require legislative amendment and I have no plans at present to make this change.