James Bannon (Longford-Westmeath, Fine Gael)
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316. To ask the Minister for Social Protection her plans to reform the rent and mortgage interest supplement to pay the owner rather than the tenant; and if she will make a statement on the matter. [25384/14]

Seán Kyne (Galway West, Fine Gael)
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384. To ask the Minister for Social Protection while acknowledging the introduction of the new housing assistance payment, if a more flexible approach can be adopted regarding the rent supplement scheme in areas such as Galway city which is experiencing a rise in rental prices and in consideration that the roll-out of HAP is being performed on a phased basis; and if she will make a statement on the matter. [26084/14]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 316 and 384 together.

In July 2013 the Government approved the introduction of the Housing Assistance Payment (HAP). Under HAP, responsibility for recipients of rent supplement with a long-term housing need will transfer from the Department of Social Protection to housing authorities. Officials are working closely with those in the lead Department of Environment, Community and Local Government in piloting HAP in Limerick City and County Council with further roll out to selected housing authorities during the year. Payments will be made directly to landlords by the housing authorities under the HAP scheme.

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 to assist them with their accommodation needs. There is no direct relationship between the landlord and the Department in the administration of the scheme. However, social welfare legislation provides for the payment of a rent supplement payment to a nominated payee such as a landlord on behalf of the tenant. This arrangement is entered at the tenant's request and subject to the consent of the Department. Similar arrangements apply in respect of the mortgage interest supplement scheme in relation to the payment of the supplement direct to mortgage lenders.

It is open to the landlord to bring to the attention of the Department any instance where they suspect that a tenant is receiving rent supplement and is not paying their rent. Where the Department becomes aware that a person is not using rent supplement to meet the accommodation costs, payment of the supplement is suspended and the matter investigated. Where a landlord has a grievance in relation to the non-payment of rent by a tenant, s/he may apply to the Private Residential Tenancies Board to have the dispute resolved through the Board’s dispute resolution process.

The efficiency of the rent supplement and the mortgage interest supplement schemes would be significantly affected if all payments were to be made directly to landlords/mortgage lenders, for the provision of short term support. I therefore have no plans to amend the payment arrangements available under these schemes at this time.

The most recent review of maximum rent limits was completed in June 2013 with revised rent limits introduced on 17 June 2013. For all counties, major urban population centres were tested to ensure access to housing while also ensuring value for money for the State. Despite pressures on the social protection budget, there were increases in the rent limits in some areas, including Galway, and reductions or no change in others. The limits for Galway reflected the respective prevailing rental markets and analysis shows that there are currently properties available within these limits. A new rent limit review has commenced within the Department and will feed into the budgetary process.

I can assure the Deputy the Department's staff in the Community Welfare Service have considerable experience in dealing with customers and will continue to make every effort to ensure that their accommodation needs are met. Staff have discretionary powers to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant, for example, when dealing with applicants who are homeless or who are at risk of losing their tenancy. Such cases are examined on a case by case basis having regard to the situation presented.