Michael McGrath (Cork South Central, Fianna Fail)
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47. To ask the Tánaiste and Minister for Social Protection the cost of increasing the rent supplement limit in Dublin, Cork, Limerick, Galway and Waterford by 5%; 10% and 15%; and if she will make a statement on the matter. [33846/15]

Michael McGrath (Cork South Central, Fianna Fail)
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48. To ask the Tánaiste and Minister for Social Protection the cost of increasing all rent supplement limits by 5%; 10% and 15%; and if she will make a statement on the matter. [33847/15]

Kevin Humphreys (Dublin South East, Labour)
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I propose to take Questions Nos. 47 and 48 together.

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting approximately 65,000 people at a cost of €298 million in 2015. Over 13,700 rent supplement tenancies have been awarded this year showing that significant numbers are being accommodated under the scheme.

A review of the rent limits undertaken earlier this year found that the impact of increasing limits at a time of constrained supply will increase costs disproportionately for the Exchequer with little or no new housing available to recipients.

Analysis shows that increasing the current rent limits nationwide by 5% would result in a full year cost in excess of €15 million, a 10% increase would carry a cost of almost €37 million, with a 15% increase costing approximately €51 million. A breakdown of this cost on a county basis is not available, however the costs to apply such an increase in the Dublin, Cork, Limerick, Galway and Waterford regions, which accounts for over 58% of the customer base, would account for a significant proportion of this additional cost. Though the costing model accurately reflects the increased cost for the scheme, the likelihood is that there will be little additional supply achieved for persons seeking rent supplement support due to the constrained market. There is also the additional risk in a market with such tight supply that rent supplement limits would generate homelessness for low income/single earner families who could no longer compete with the higher rents.

Rather than increasing limits at this time rent supplement policy will continue to allow for flexibility where landlords seek rents in excess of current limits. Flexibility is provided under the National Framework for Tenancy Sustainment for both existing customers of the scheme and new applicants. Under this measure tenant’s circumstances are considered on a case-by-case basis, and rents are being increased above prescribed limits as appropriate. This flexible approach has already assisted approximately 4,000 households throughout the country to retain their rented accommodation. In addition, the Department, in conjunction with Threshold, operates a special Protocol in the Dublin and Cork areas where supply issues are particularly acute, with plans to extend this arrangement to Galway City.

I can assure the Deputy that where Departmental staff are notified of a threat of tenancy loss these measures are implemented as appropriate. Persons in receipt of rent supplement at risk of losing their tenancy are advised to contact the Department’s Community Welfare Service or Threshold’s Tenancy Protection Service without delay.

I am keeping this matter under close review.