Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 122: To ask the Minister for Social Protection her views on how successful the new rent allowance caps have been in forcing landlords to reduce their rents. [31228/12]

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. There are approximately 93,000 persons in receipt of rent supplement for which the Government has provided a sum of €436 million for 2012.

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. New maximum rent limits were introduced, from January 1 2012, following 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 private rented accommodation.

The revised rent limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Approximately 21,300 claims have been awarded in 2012, indicating that it is possible to secure accommodation within the revised limits. The Department will continue to monitor rent levels throughout the country.