Written answers

Tuesday, 21 October 2014

Department of Social Protection

Rent Supplement Scheme Payments

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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93. To ask the Minister for Social Protection if she has conducted a review of the rent allowance scheme; the way the rent caps relate to current market prices; the way the scheme as it stands is contributing or not to the increase in homelessness; if she will provide details of any and all such reviews; and if she will make a statement on the matter. [39801/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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There are approximately 73,500 rent supplement recipients for which the Government has provided over €344 million for 2014. I am acutely aware of the difficulties people are experiencing in maintaining affordable rented accommodation, including those in receipt of rent supplement, in the current market where supply is constrained. 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, their families and students. I plan to keep the matter under close review. The Department is reviewing the maximum rent limits and the 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. Details of the Department’s review will be published when finalised.

I can assure the Deputy that officers administering rent supplement throughout the country have considerable experience in dealing with customers and make every effort to ensure that their accommodation needs are met including through the use of their discretionary statutory powers as necessary. In light of a particular concentration of the homelessness problem in the Dublin area, 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 protocol in mid-June 2014, almost 140 families have had their rent supplement claims revised by the Department. I will continue to keep the protocol under review.

Increasing housing supply and the reactivation of the construction activity is a key issue for Government and is critical to restoring stability to the rental market. The Government has recently launched its Construction Strategy 2020 and will shortly launch a Social Housing Strategy.

As part of Budget 2015, Government has announced 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.

An additional €10.5 million will be provided for accommodation and related services for homeless persons, increasing the annual expenditure for tackling homelessness to €55.5 million next year.

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