Written answers

Wednesday, 8 February 2012

Department of Social Protection

Social Welfare Code

9:00 pm

Photo of Noel GrealishNoel Grealish (Galway West, Independent)
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Question 101: To ask the Minister for Social Protection if the new rent supplement rates are in accordance with the Residential Tenancies Act 2004 which clearly defines the term market rent; if the new rates are a form of rent control; if she will explain the rationale in using too large a geographical area which may distort the market; if she is satisfied that the new rates are not anti-competition, as defined by the Competition Authority; if she has had any contact with the Competition Authority on the new rates; and if she will make a statement on the matter. [7142/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Rent supplement provides short-term income 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 as 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 any way. The new maximum rent limits which came into force on 1 January 2012 are in line with the most up to date market data available. The emphasis of the rent limit review was to ensure that value for money is achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

Staff administering rent supplement 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 allows for lower rent levels to apply in certain locations within counties reflecting local market conditions.

The Residential Tenancies Act 2004 defines the term market rent in section 24 (1) as the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling, in each case on the basis of vacant possession being given, and having regard to the other terms of the tenancy, and the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area to that in which it is situated. 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. There is no direct relationship between the landlord and the Department in the administration of the scheme. The Department does not become involved in the choice of accommodation by the tenant and as such the issue of competition does not arise.

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)
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Question 102: To ask the Minister for Social Protection if she will consider changes to the system of signing on for social welfare payments to avoid customers having to queue up outside social welfare offices, in order to preserve the dignity of those signing on. [7148/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The live register has risen to unprecedented levels due to the economic downturn and this has resulted in a major increase in the number of people attending the Department's local offices. In many instances people begin queuing outside offices before they open in the mornings. These queues include people making a claim for the first time and people signing the live register to show that they continue to be unemployed.

In many offices, an appointment system for taking claims is in place and when a person first attends at a local office to claim, they are given details of the supporting documents required together with an appointment to attend to have the claim taken. This system has been particularly effective in reducing queuing in local offices and it has also helped improve processing times where the customer provides supporting documentation at point of claim.

The signing arrangements for people who are already on the live register have been reviewed at a number of offices and additional signing days have been introduced, where necessary. In addition, at some offices, specific signing times have been allocated to claimants to reduce queuing times.

An on-going programme of process improvement initiatives is underway in the Department's local and branch offices. As part of this improvement package, the Department has developed the functionality to capture a client's signature on an electronic signature pad as part of the certification process for fully unemployed clients. This introduces greater flexibility to the process as it means that clients will be able to sign at any counter in the office in future. Offices will be able to respond immediately to queues by opening and closing counters, as required, to deal with the volumes on hand at any particular time rather than being limited to having a set number of counter points open. This will enable offices to reduce queuing times and provide a higher quality of customer service. This process has been trialled in one local office and the functionality will be rolled out, on a phased basis, to other offices during this year.

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