Rent allowance caps and homelessness
Charlie McConalogue criticised the lone-parent payment cut, rising homelessness and reduced rent allowance caps, urging the Tánaiste to revise them. She defended targeted assistance, blamed Fianna Fáil’s housing policies and said increased social housing supply was the solution.
The past week has been a very difficult one for people in Greece and many people in Ireland. Yesterday saw the callous cut to the one-parent family payment, which will affect 30,000 single parents and their children. Despite being warned that this is a counterproductive policy that will hurt many, the Government has ploughed on with it. This is against the backdrop of the highest number of homeless families ever recorded, with 1,038 children from 490 families being housed in hotels across Dublin alone. The number of homeless families is increasing month on month, despite the Government’s stating it is taking urgent action. Government policies are, unfortunately, making the housing crisis worse, instead of better. The Government has been good on rhetoric and in stating its vision, but it is not taking enough practical decisions to allow families to stay in their homes. Only two of the six banks have passed on reductions in mortgage rates, yet the Government refuses to take any real action to ensure relief for mortgage paying families. Its refusal to increase rent supplement adds to the increasing problems of families who find themselves without a home. The housing charity, Simon, recently surveyed 1,150 properties available to rent in Dublin and found that only 12% were available within the rent supplement cap limits. As a result, housing authorities are allocating emergency accommodation in hotels for families who cannot rent properties. For the first time, families are presenting to the Housing First agency which accommodates rough sleepers. This week Focus Ireland again called on the Minister for the Environment, Community and Local Government, Deputy Alan Kelly, to intervene urgently. By refusing to address the rent supplement caps which have become totally disconnected from the rental market, the Government is standing over a vicious circle for the families affected. Will the Tánaiste agree to increase the rent supplement caps to help address this problem?
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The Deputy started by referring to the poor unfortunate people in Greece and what had befallen them. It must come as a relief to everybody in this House that, thankfully, what has happened to people in Greece is not a threat here because in this economy we have had a managed process of recovery. The Deputy also referred to the one-parent family payment. I do not think there is such a thing as a one-parent family payment.
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The basis of the payment in Greece is whatever pensions are available.
The Deputy referred to changes in the one-parent family payment. This is the third year of the changes. For Fianna Fáil’s information, because it will apply to many of the Deputy’s constituents - perhaps he should inform himself on the issue - this year we have had contact with approximately 25,000 parents on a continuing basis, in individual and group interviews, in all Intreo offices, to open up services to lone parents. Already, since February, 1,250 lone parents have transitioned to family income supplement, which boosts their family income significantly. I want the Deputy to be aware of this because I am quite sure many of his constituents have benefited directly from it.
We have a huge issue in building and providing extra units, apartments and houses around the country. The Government has allocated unprecedented levels of funding, from the funds generated by recovery and people going back to work, to building, leasing and renting houses and the transfer to the housing assistance payment, HAP. As in the case of lone parents, when we set up and established 60 new Intreo offices, we moved from the Department of Social Protection simply paying money to people to it having individual interaction with people. I sat down with the most senior people in Simon who came to see me less than a month ago at my invitation in my offices for pre-budget discussions. They told me about their concerns about housing, housing allocations and homelessness. They also told me that they were particularly pleased that the one-to-one service had seen more than 2,000 cases countrywide of people who were worried about rent increases to negotiate the rent on a one-by-one basis with landlords. This was done through the sustainment protocol in operation with Simon and other organisations such as Threshold. That is the way we are approaching the problem. The Deputy should be aware of this. We have rolled out the protocol around the country through the community welfare offices, as requested.
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I thank the Tánaiste for her response. My question to her was if she would agree to revise and increase the rent allowance cap which she had introduced. She proceeded to preach to me on a number of fronts, but she has avoided answering the question. The unfortunate reality is that in 2012 she reduced the rent allowance cap. She told us she was reducing it to reflect rental market considerations. In the past three years rents have increased by between 20% and 30%, yet today and in the past few months the Tánaiste has refused to amend the rent cap allowances to reflect current market conditions. Instead, she tells us that individual families who cannot find a home within the rent allowance caps should try to deal with the problem on a one-to-one basis and go cap in hand to plead their case with their local authority and the landlord. Those in receipt of rent allowance are not a tool for the Tánaiste to try to affect the rental market. They are people who need housing in the same way as anyone else and who are more dependent and vulnerable than anyone else. It is unacceptable for the Tánaiste to oversee a situation where in many parts of the country people who need to find a home cannot do so within the rent allowance caps. Whenever the situation changes, the rules need to change. That was the Tánaiste’s stance in 2012 and there is no reason she should not now take the same approach. She cannot continue to stand over this situation. The problem of homelessness is growing day by day and it is owing to a lack of action by the Tánaiste that it is continuing. Will she agree to revise the rent allowance caps in the next few weeks to ensure this crisis can be addressed?
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When Fianna Fáil had finished with the economy in its bubble of greed and speculation-----
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The Tánaiste should answer the question.
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Let us deal with the housing crisis, please. That is a tired excuse from the Tánaiste. This is her issue and she needs to deal with it.
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The Tánaiste should go and listen at the banking inquiry.
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When Fianna Fáil had finished with the destruction of the economy - there are quite a few Members in this House who understand what happened in the housing market - housing stopped.
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More importantly, because the party was well in with a certain type of developer and banker-----
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That is ridiculous. Will the Tánaiste deal with the issue? There are people who are homeless in this country.
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The Tánaiste should answer the question.
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What is the Tánaiste doing for the homeless people?
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All she is interested in is scoring political points. That is all it is.
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It is a serious issue. This is outrageous.
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The building of social housing was no longer regarded as an appropriate social commitment by Fianna Fáil at a time when the economy had never been stronger or boomier, so to speak. In regard to the Deputy's proposal, first, I am going to go back again on what the solution is. We have to build more units and return to the development of social housing, which the Deputy's party callously abandoned when the people who need social housing-----
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What about the rental caps?
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Will you stay quiet? This is Leaders' Questions. It is not your question; it is his question.
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Yes, but she should tell the truth.
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Second, as I just said, I regularly meet the organisations dealing with housing issues.
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The Tánaiste is doing nothing about it, in other words.
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What the Deputy is suggesting is that we should drive increases in rents for people at work and paying their own rent.
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The Tánaiste should not use them as a bargaining chip.
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What we are doing is helping families on a one-to-one basis. We regularly text all the people where we have their mobile phone numbers to tell them, if they have any query or difficulty with a landlord - I want to repeat this message here-----
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-----to please contact the social welfare community services and they will get help specifically, as more than 2,000 families have done so far this year in renegotiating-----
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She wants them to come, cap in hand, to plead their case.
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There have been no tax increases either.
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They just want to take attention away from the banking inquiry.