Pat Breen (Clare, Fine Gael)
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Question 351: To ask the Minister for Social Protection if she will clarify the situation in respect of a scheme (details supplied); and if she will make a statement on the matter. [5093/12]

Joan Burton (Dublin West, Labour)
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The Government announced in Budget 2012 a reduction in the materials and training allocation for Job Initiative schemes.For 2012 the grant per place will be €434.90. This will result in a funding reduction for materials/overheads from 8% to 4.35%. The minimum weekly payment to a Job Initiative participant will continue at €416. In money terms the materials, overheads and training element of the grant will be reduced to €18.90 per place per week. Grant aid to the sponsors to cover supervision of the project will continue on the same scale as community employment supervisors. I have given assurances to community and voluntary organisations that no community employment scheme will be forced to close as a result of the reductions in training and material grants, pending the completion of a review at the end of March.

Charlie McConalogue (Donegal North East, Fianna Fail)
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Question 352: To ask the Minister for Social Protection if she will confirm that the free travel pass will be retained for old age pensioners, persons in receipt of disability allowance and persons in receipt of carer's allowance; and if she will make a statement on the matter. [5105/12]

Joan Burton (Dublin West, Labour)
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Funding for the free travel scheme was frozen by the previous Government at 2010 levels of expenditure as outlined in the National Recovery Plan 2011-14 and the 2011 Budget. This cap was confirmed in the 2012 Budget. However, there were no changes to the eligibility of old age pensioners, or people in receipt of disability allowance or carer's allowance. The current free travel scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by over 90 private transport operators. In 2011, there were almost 730,000 people in receipt of free travel at a cost of €76 million. Every scheme operated by my Department, including free travel, was examined in the context of the Comprehensive Review of Expenditure and will continue to be kept under review given the ongoing need for savings. In addition to closely monitoring each scheme and its cost, the review continues to inform my decisions in relation to future spending and budgetary matters.

Stephen Donnelly (Wicklow, Independent)
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Question 353: To ask the Minister for Social Protection if she will publish the report on the rental sector prepared by her prior to the announcement of changes to rent supplement rates; if any other analysis of the sector was done prior to announcing the change to rent allowance; if she will publish same; the reason County Wicklow has seen the biggest drop in the rent allowance rates payable; the measures that were taken to communicate these changes to landlords and tenants; the supports being offered to assist tenants now faced with attempting to renegotiate their rent, such as mediation; and the provision in place for persons who fail to renegotiate their rent and fail to find an alternative suitable rental home and are thereby threatened with homelessness. [5111/12]

Joan Burton (Dublin West, Labour)
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Rent supplement provides 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. Since 2005, rent supplement expenditure has increased from €369 million to a provisional outturn of €503 million in 2011. The number of persons claiming the allowance increased from almost 60,200 persons in 2005 to over 96,800 at end 2011, a 61% increase.

As the Department currently funds approximately 40% of the private rented sector it is essential that State support for rents are kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others, such as low paid workers and students.

New maximum rent limits came into force on 1 January 2012 and are based on the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

Analysis of the rental market for Wicklow carried out by my Department found that rental prices for the Bray area were having a distorting effect on the overall analysis for Wicklow. Accordingly for the purpose of establishing limits for the county, the Bray area was excluded and will now be managed separately.

Officials in my Department are in the process of drawing up local limits for the Bray area. This will ensure that tenants for the full county may continue to source accommodation within the prevailing market rates and ensure the best value for money is achieved for the taxpayer.

As existing claims come up for review or when an existing lease expires, they will be reassessed using the new limits. Where a claim is under review and the rent is above the new maximum limit the customer is being asked to contact the landlord to renegotiate the rent. Where a landlord does not agree to reduce the rent to the new rates departmental officials will discuss the options open to the tenant up to and including seeking alternative accommodation. It is accepted that in limited circumstances rent supplement recipients may be forced to secure alternative accommodation. Such applicants will be afforded reasonable time periods to secure new accommodation. Department officials administering rent supplement will continue to ensure that the rent supplement recipients' accommodation needs are met. There will be no incidence of homelessness due to these changes. I will be publishing the rent limits review report in the coming days.