Written answers

Thursday, 26 May 2011

Department of Social Protection

Social Welfare Code

11:00 am

Photo of Anne FerrisAnne Ferris (Wicklow, Labour)
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Question 42: To ask the Minister for Social Protection if a person is deemed eligible for rent allowance, the reason there is a ceiling on the maximum amount they are allowed to pay for housing; if the person receiving rent allowance can make up the difference from another source; the reason this is not permitted; and if she will make a statement on the matter. [13146/11]

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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Question 45: To ask the Minister for Social Protection her plans to review the limits of the maximum rent levels for each county, as set by the Department of Social Protection for the rent supplement scheme, in view of the recent increases in rent levels and also the considerable discrepancies in rental levels which now exist between different urban centres and between locations within counties. [13169/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 42 and 45 together.

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.

Rent supplement is subject to a limit on the amount of rent that an applicant may incur. Rent limits are set at levels that enable eligible households to secure and retain basic suitable rented accommodation, having regard to the different rental market conditions that prevail in various parts of the state. It is essential to ensure that state support for rent supplement tenants, who form a substantial section of the rental market, does not give rise to inflated rental prices with particular negative impact on those tenants on lower incomes, including people in low paid employment. Community Welfare staff have the authority to set levels lower than those provided for in the regulations, in respect of sub-divisions of their functional areas, where this is appropriate. This power is provided to reflect the fact that lower rent levels may apply in certain locations within counties.

Under normal circumstances rent supplement is not paid where the rent charged for the accommodation is above the relevant maximum rent limit. Notwithstanding these limits, under existing arrangements the Health Service Executive may, in certain circumstances, exceed the rent limits as an exceptional measure, for example where there are special housing needs for a disabled person in specially-adapted accommodation or on a short term basis until the tenant is in a position to resume responsibility for his/her rent. This discretionary power is only used in special cases, but it ensures that individuals with particular needs can be accommodated within the scheme.

In addition, where a person is availing of an income disregard in respect of part-time earnings, the applicant may be allowed to contribute an additional amount towards his/her rent where the rent is in excess of the rent limits. This is only allowable where the person in question has sufficient income after paying the rent to meet his/her basic needs. "Sufficient income" in this context means the relevant basic supplementary allowance rate less the prescribed minimum contribution to rent.

The most recent rent limit review established new maximum rent limits from June 2010 which were in line with the most up to date market data available. The current rent limits are in place until December 2011 and will be reviewed later this year. The review will be based on analysis on data on private rental prices supplied by the Central Statistics Office, the Private Residential Tenancies Board and publicly available data.

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