Rent supplement and homelessness
Thomas Pringle argues that reduced rent supplements and rising rents are forcing tenants into homelessness and unauthorised top-up payments. The Taoiseach defends rent limits, urges evidence of illegal payments to be exposed, and says the scheme will later transfer to local authorities.
The Taoiseach's programme for Government pays lip-service to tackling homelessness and pledges to put an end to long-term homelessness. This is all very noble but yesterday Focus Ireland highlighted the fact that rent supplement payments had fallen by 28% in the past three years while rental prices had remained steady and, in some cases, had increased, forcing people out of their homes. The Minister for Social Protection stated in the House that cuts to rent supplement would not result in additional homelessness, but landlords are refusing to accept lower supplements, and without having savings of their own, people are being evicted while others are being forced to give top-up or under-the-counter payments, putting further strain on their households. This is causing homelessness and it is as a direct result of the Government decision to cut rent supplement. Does the Taoiseach want to see the opening of more soup kitchens like the recent one in Athlone? Is this the kind of buy-in to recovery the Taoiseach is looking for from the people?
Some 97,000 households are dependent on rent supplement, and introducing any further cuts will mean more people will be left without a home. Some landlords are charging extortionate rates for their properties, but simply cutting rent supplement and waiting for it to sort itself out is not a solution. As long as there is a crisis in social housing, there will be a need for rent supplement.
People on low incomes, who have a clear housing need, should not be punished for this. It is up to the Taoiseach to solve this problem, but so far he has failed. The programme for Government states that prevention is better than cure. How does the Government plan to prevent this cause of homelessness? Will the Taoiseach commit to bringing forward the next scheduled review of the limits from June 2013, with a view to increasing the threshold for rent supplement to ease the urgent situation many families face?
Comment on this
The Government, through the Department of Social Protection, funds approximately 30% of the private rented sector. Currently, it is costing €430 million per annum. Deputy Pringle is well aware that it was necessary to put in some limits in respect of the rents being charged by landlords. The relationship between the Department is with the tenant and not the landlord, so a tenant applying for rent allowance does so in negotiation with the landlord. If the rent being charged is above the limit set down, then the tenant is advised to discuss that with the landlord with a view to reducing the rent or to seek alternative accommodation.
Some 42,000 people had their claims for rent allowance awarded this year, which proves the point that it is possible to have acceptable accommodation provided for tenants without breaching the limits set down. The new maximum rent allowance limits came into force on 1 January 2012 and will apply until June 2013. This has worked in 42,000 cases where the rent sought by the landlord was within the limit set.
This will move from the Department of Social Protection, which currently provides the rent supplement to housing authorities, to a new housing assistance payment scheme which will be introduced as part of the new housing Bill to be published next year. Those looking for suitable accommodation are advised to talk to the landlord in order that the rent is with the limits set. As I said, 42,000 have been awarded this year.
Comment on this
The answer is "No". The Taoiseach said the State funded 30% of the private rented sector and went on to say that rental supplement was a payment made to tenants. Which is it? If the State is funding the private rented sector, then it can control rents, but it clearly does not. The Taoiseach said 42,000 cases were within the limits set. That is true, but there are also 42,000 cases which must pay top-ups or under-the-counter payments because tenants cannot get accommodation at a rent within the limits set.
The Government has increased the contribution from single tenants by more than 130% since 2008. That has meant that single tenants must increase their top-ups to their landlords by more than 130%. That is the situation in the real world in which people are living. They must pay the top-ups, which landlords are demanding, out of their social welfare payments to keep a roof over their heads. That is leading to a situation where we see soup kitchens opening throughout the country. Is that a situation which the Government wants to see?
Comment on this
For somebody who is able to go to the High Court and the European Court of Justice and who still has not paid his household charge-----
Comment on this
Maybe Deputy Pringle has put his finger on a button because he said many of these tenants are paying under-the-counter payments to landlords. Does he expect the State, through the Department of Social Protection, to continue to fund landlords whose tenants are expected to pay under-the-counter payments? If he has evidence of under-the-counter payments, I would advise him to bring it into the public arena-----
Comment on this
-----because the scheme provides that when the tenant applies for accommodation and rent supplement, he or she does so against these maximum limits which have been set. Where rent comes up for review or reassessment, it is against these limits that it is reassessed. Deputy Pringle has told us he has evidence of people who are being forced to pay under-the-counter payments to landlords.
The Deputy should expose that because that is not what this scheme is about. The scheme will last until June 2013 and will be moved to the local authority under the housing Bill, under which a new scheme of assistance payments for accommodation for tenants will be introduced. I await hearing the Deputy's evidence of the under-the-counter payments.