Written answers

Tuesday, 28 April 2015

Department of Social Protection

Rent Supplement Scheme Data

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

62. To ask the Minister for Social Protection the total funds paid in rent supplement in 2014; the amount paid directly to landlords; the amount of money paid where a refund is sought; and if she will make a statement on the matter. [16337/15]

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

103. To ask the Minister for Social Protection if she will provide in tabular form the number of new rent supplement tenancies created; the total number of rent supplement recipients in the first quarter of each of the years 2011 to 2015; and if she will make a statement on the matter. [16787/15]

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

107. To ask the Minister for Social Protection the efforts her Department is making to alleviate the difficulties that are being caused by rental caps under the rent supplement scheme which are now out of touch with market rates in County Kildare making it very difficult for applicants to the scheme to access suitable housing; and if she will make a statement on the matter. [16834/15]

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 62, 103 and 107 together.

The rent supplement scheme provides 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. There are approximately 70,000 rent supplement recipients for which the Government has provided over €298 million for in 2015. The total paid in respect of rent supplement in 2014 was €338 million. Data in relation to the number of rent supplement tenancies and new tenancies created for the first quarter in each of the last five years is provided in the attached tabular statement.

The Department recently published a review of the maximum rent limits, “Maximum Rent Limit Analysis and Findings” and it is available on www.welfare.ie. The review finds that increasing rent limits at this time could potentially add to further rental inflation in an already distressed market, affecting not alone rent supplement recipients, but lower-income workers and students. Between the rent supplement scheme and the Rental Accommodation Scheme (RAS) administered by the Department of the Environment, Community and Local Government, the State accounts for a third of the private rented market. The State is therefore a very significant player in the sector which has a responsibility not alone to rent supplement recipients but also to the market as a whole, including all those in private accommodation.

In light of the review’s findings, the Department will instead continue to allow for flexibility in assessing customers’ accommodation needs through the National Tenancy Sustainment Framework. Under this approach, each tenant’s circumstances throughout the country, including those in the Kildare area, are considered on a case-by-case basis and rents can be increased above prescribed limits as appropriate. I am satisfied that this is the appropriate response at this time which has assisted in excess of 1,000 rent supplement recipients throughout the country to retain their rented accommodation.

In addition, the Department in conjunction with Threshold operates a Tenancy Sustainment Protocol in the Dublin and Cork areas where supply is most acute. The primary objective of the Protocol is to ensure a speedy intervention to ensure that families at immediate risk of losing their tenancy get rapid assistance. Of the 1,000 recipients mentioned above, over 530 households in Dublin and some 14 in Cork city have been provided assistance through increased rent limits under the Protocol.

The review clearly points out that the main cause of difficulty for persons renting or seeking to rent at this time is the much reduced availability of affordable private rented accommodation. The issue of supply is being addressed by Government through the Construction 2020 Strategy and the Social Housing Strategy. My Government colleague, the Minister for the Environment, Community and Local Government, is also considering a number of policy options in relation to achieving greater rent certainty. I can assure the Deputies that I am keeping this matter under close review to ensure that the appropriate supports continue to be provided for rent supplement recipients.

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 contractual 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 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. Recent figures shows that payments direct to nominated payees are made in approximately 20% of cases. A breakdown of expenditure data under rent supplement for nominated payments is not available.

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. The Department’s policy is to ensure that every effort is made to prevent overpayments, but if they occur, they are regarded as a debt to the Exchequer and every effort is made to recover the amounts due.

Tabular Statement

Rent Supplement Tenancies

YearTenancies at End 1st QuarterNew Tenancies 11st Quarter
201197,28810,311
201294,9907,607
201386,3756,571
201477,7315,188
201569,7933,723
1Refers to cases that were not awarded at the end of the previous quarter.

Comments

No comments

Log in or join to post a public comment.