Written answers

Thursday, 23 February 2012

Department of Social Protection

Social Welfare Benefits

5:00 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 122: To ask the Minister for Social Protection if she will not cut the rent supplement in respect of a person (details supplied) in County Dublin [10391/12]

Photo of Joan BurtonJoan 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.

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. These new limits are in line with 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.

All new rent supplement applications are subject to these limits. As existing claims come up for review, or when an existing lease expires, they will be reassessed using the new limits. The person concerned has been advised that she should renegotiate her rent with her landlord at the end of her current lease, which is due to expire on 6 March. 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.

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