Seán Kenny (Dublin North East, Labour)
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Question 135: To ask the Minister for Social Protection her views on whether the rent supplement limits currently being applied are considerably below the market rents for accommodation in the Dublin 5 and Dublin 13 areas. [16047/12]

Joan Burton (Dublin West, Labour)
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The purpose of rent supplement is to provide short-term income support to eligible tenants 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.

The new maximum rent limits were set after an analysis of 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 good quality private rented accommodation. 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 way that could increase rent prices for others such as low paid workers and students. 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.

The Department is monitoring the impact of the implementation of these new limits. Although the new limits have only been in place for just over two months the current trends would suggest that the market is adjusting and the level of accommodation available at these limits is increasing.