Written answers

Tuesday, 23 October 2012

Department of Social Protection

Rent Supplement Scheme Payments

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Social Protection further to Parliamentary Questions Nos. 367 and 368 of the 16 of October 2012, if she has examined the considerable hardship now caused to single person's due to the differentiation between rent supplement rates and market rent rates within the Kildare area; if she has any immediate plans to address this discrepancy within the rent supplement programme with particular reference to anecdotal evidence of “topping up” whereby tenants are forced into a position to give additional money to their landlords because the rent supplement rates are too low; and if she will make a statement on the matter. [46463/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The purpose of the rent supplement scheme is to provide 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. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 90,000 rent supplement recipients for which the Government has provided €436 million for 2012.

Rent supplement is calculated to ensure that the person, after payment of rent, has an income equal to the basic supplementary welfare allowance rate, less a specified weekly minimum contribution which recipients are required to pay from their own resources. The “top up” payments referred to fall into two specific categories. Where a person has an additional income above the rate of supplementary welfare allowance they are, in certain circumstances, allowed to top up their rent as they will still have sufficient income to meet their basic needs after paying their rent.

The second type of top up payment can occur where the application to the Department declares a rent lower than that actually being charged by the landlord. Any instance of false declarations should be reported to the relevant Department representatives who have specific legislative powers to deal with such offences. There has been no evidence presented to the Department showing widespread or systemic ‘false declarations’ of rent supplement through the use of illegal top-ups.

Analysis shows that for County Kildare, there are properties available within the maximum rent limits for rent supplement recipients, including rental properties available to single persons. Department officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met and that the residence is reasonably suited to their residential and other needs. Officials in my Department continue to examine the impact of the rent limits on those who claim rent supplement but at this stage I have no plans to revise the existing rent limits. The next review of rent limits will take place before June 2013 and any changes to the limits in County Kildare will be considered as part of this review.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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To ask the Minister for Social Protection if any review has been undertaken by her Department on the impact which cuts in rent supplement, implemented earlier this year, are having on those living in the private rented sector and who are dependent on the payment; if she has particular concerns about the effects that the cuts are having on households who find it difficult to find accommodation within the rent supplement limits; and if she will make a statement on the matter. [46479/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The State plays a major role in the private rental market through the rent supplement scheme. As the Department currently funds approximately 30% of the private rented sector it is essential that State support for rents are kept under review and reflect current market conditions. There are approximately 90,000 persons in receipt of rent supplement for which the Government has provided €436 million in 2012.

Revised maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These 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 private rented accommodation.

The revised limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Approximately 40,000 rent supplement claims have been awarded in 2012 indicating that accommodation can be secured within the new limits. Department officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met; there will no incidence of homelessness due to these changes. Officials in my Department continue to review the impact of the rent limits on those who claim rent supplement but at this stage I have no plans to revise the existing rent limits.

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