Written answers

Thursday, 16 October 2014

Department of Social Protection

Rent Supplement Scheme Payments

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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48. To ask the Minister for Social Protection the provisions that are in place to address the issue of top-up payments currently being made by recipients of rent supplement to landlords (details supplied); her views on whether this practice is on the increase and many vulnerable persons already on a limited income are being forced into debt; and if she will make a statement on the matter. [39577/14]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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49. To ask the Minister for Social Protection her plans to revisit the 2013 review of rent supplement (details supplied); her plans to revisit the limits set, in particular for counties Louth and Meath; if she will provide a commitment that no further reductions will be made, nor any increases to personal contributions; and if she will make a statement on the matter. [39578/14]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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50. To ask the Minister for Social Protection the current guidelines and discretionary remit available to community welfare officers and social welfare or Intreo personnel when dealing with persons seeking an increase in rent supplement in order to remain within their home, or those who are forced to seek alternative accommodations which are above the current ceilings (details supplied); and if she will make a statement on the matter. [39579/14]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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51. To ask the Minister for Social Protection her plans to extend the current homelessness prevention protocol for families to other categories of persons; her plans to extend this to areas outside of County Dublin; and if she will make a statement on the matter. [39580/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 48 to 51, inclusive, together.

The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources. 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 73,500 rent supplement recipients for which the Government has provided over €344 million for 2014.

I can confirm that I have no plans to increase a person’s minimum contribution under the rent supplement scheme, that is, the amount that a person is required to pay towards their accommodation from their own resources.

Considering the unprecedented pressures on supply in the private rented market, particularly in areas of high demand, increasing rent limits at this time will only serve to place higher pressure on rental prices nationally, exacerbating what already is a very difficult situation for all persons renting. I am concerned that raising rent limits may not be the solution to the problem as it is likely to add to further rental inflation and impact, not alone on rent supplement recipients, but also on many lower income workers and their families and students. I plan to keep the matter under close review.

Analysis shows that the impact of increasing limits will yield only a very marginal increase in available supply for rent supplement recipients with the only certainty that raising limits will increase costs disproportionately for the Exchequer with little or no new housing available to new recipients.

Increasing both public and private housing supply and the reactivation of the construction activity is a critical issue for Government at this time and the resolution of the housing supply situation is a key element in restoring stability to the rental market. The Government has recently launched its Construction Strategy 2020. This provides for a strategic approach to returning the construction sector, in a sustainable fashion, towards the provision of housing based on real and measured demand and addresses the full range of relevant issues including the planning process, financing, access to mortgage finance and the construction workforce.

Government is determined to meet the scale of social housing need and has announced, as part of Budget 2015, significant capital investment of over €2.2 billion for social housing for the next three years. In 2015, over €800 million will be invested in a range of housing programmes which represents the first major investment in housing since 2009.

My colleague, the Minister for the Environment, Community and Local Government, Alan Kelly TD, is also due to shortly publish a Social Housing Strategy which will propose a range of approaches and reforms that are innovative and challenging and that will provide a basis for an improved and sustainable approach to the provision of social housing supports in Ireland.

I am fully aware of the difficulties people are experiencing in maintaining affordable rented accommodation, including those in receipt of rent supplement, in the current market particularly in areas of high demand. I want to assure the Deputy that officers administering rent supplement throughout the country have considerable experience in dealing with customers and will continue to make every effort to ensure that their accommodation needs are met. Discretionary powers are available to staff to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant. A notice reminding staff of their statutory discretionary power to award a supplement for rental purposes in exceptional cases, for example, when dealing with applicants who are at risk of losing their tenancy was circulated earlier this year.

In view of the particular supply difficulties in Dublin, the Department has agreed a tenancy sustainment protocol with the Dublin local authorities and voluntary organisations so that families on rent supplement who are at risk of losing their accommodation can have more timely and appropriate interventions made on their behalf. Since the launch of this initiative in mid-June 2014, almost 140 families have had their rent supplement claims revised by the Department. I have no plans to extend this protocol at this time but will continue to review the situation towards the end of the year and into 2015.

Finally, in order to qualify for rent supplement, the tenant, landlord or landlord’s agent must complete the rent supplement application form declaring that the information, including the amount of rent, provided is accurate. The form clearly states that making a false statement or withholding information may lead to prosecution. It is very difficult for the Department to identify top up payments when both the tenant and landlord are in collusion and if the top up payment is being made in cash. In such cases the Department’s representative will discuss the circumstances of the case with the tenant before making any decision in relation to ongoing entitlement. The primary concern in dealing with such cases is to protect the tenant.

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