Tommy Broughan (Dublin North East, Independent)
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345. To ask the Minister for Environment, Community and Local Government the projected cost of establishing the housing assistance payment system; and the anticipated budget for HAP compared to the current expenditure on rent supplement. [27291/14]

Jan O'Sullivan (Limerick City, Labour)
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The approval by Government in July 2013 of the introduction of the Housing Assistance Payment (HAP) also included approval for the provision of funding to local authorities to cover the cost of accommodating HAP households and meeting the administration costs of the scheme by way of a funding transfer from the Department of Social Protection (DSP). The timing and scale of this transfer is to be agreed by my Department and DSP in consultation with the Department of Public Expenditure and Reform, having regard to the necessity to ensure that sufficient funding is available for the on-going expenditure on the rent supplement scheme and the phased introduction of HAP.

My Department is working on developing a robust financial strategy for the full roll-out of HAP, and in the first instance the scale of funds to be transferred to my Department to facilitate both the administrative and statutory pilot phases in 2014. The three Departments concerned have agreed to a funding transfer from DSP to my Department for the projected programme costs, which is based on the movement of 3,595 cases into HAP across the 7 of the pilot authorities. All three Departments are continuing discussion on the arrangements for funding the administration costs of HAP by local authorities, as approved by Government. A shared service is being provided by Limerick City and Council for 5 of the pilot authorities which is designed to deliver efficiencies in the implementation of HAP during the pilot phase.

HAP is essentially a new area of activity for local authorities with consequent decisions required as to how best to deliver the service in the local government sector. In that context, a business case has been drafted which develops a number of options for delivery which have been subjected to assessment against pre-determined criteria. Best practice guidelines in respect of the drafting of the business case and a peer review process have been followed to ensure efficiency and effectiveness.