Barry Cowen (Laois-Offaly, Fianna Fail)
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78. To ask the Tánaiste and Minister for Social Protection the cost of raising rent supplement spending by 5%, 10%, 15% and 20%; and if she will make a statement on the matter. [2701/16]

Kevin Humphreys (Dublin South East, Labour)
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Rent supplement plays a vital role in housing families and individuals, with the scheme supporting approximately 61,000 people for which the Government has provided approximately €267 million for 2016.

Recent analysis shows that increasing the current rent limits by 5% would result in a full year cost in excess of €15 million; a 10% increase would carry a cost of almost €32 million; a 15% increase costing approximately €51 million, with a 20% increase costing approximately €69 million. Though the costing model accurately reflects the increased full year 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 on offer for rent supplement recipients.

In view of these difficulties, the Department has implemented a policy approach that allows for flexibility where landlords seek rents in excess of the limits for both existing customers and new applicants to the rent supplement scheme. The circumstances of tenants are considered on a case-by-case basis and rents are being increased above prescribed limits, as appropriate. 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 under way to extend this to Galway city.

This flexible approach has assisted over 6,100 households nationwide to retain their rented accommodation through increased rent payments. Persons in receipt of rent supplement who may be at risk of losing their tenancy as a result of increases in rent are urged to contact their local Community Welfare Service or the Threshold Tenancy Sustainment Service without delay.