Rent supplement limit increase would have low impact, says DSP

Increasing rent supplement limits in Dublin, Cork and Galway would only bring a combined extra 40 properties in the three cities within reach of those in receipt of the payment, according to figures from the Department of Social Protection.

The Dáil is due to debate housing, as well hearing statements on last week's European Council meeting, when it sits on Tuesday.

The Government has been under consistent pressure on the housing issue, and has faced repeated calls to increase rent supplement limits from Fianna Fáil, Sinn Féin and others, as well as groups such as the Simon Community. Fine Gael and Labour have resisted calls to do so.

Earlier this year, the Simon Community said only 5 per cent of advertised rental properties are within reach of those on rent supplement.

Rent supplement is paid to people living in private rented accommodation who cannot provide for the cost of their accommodation from their own resources and generally applies to those on social welfare and low incomes.

In the Dublin City, Dún Laoghaire and South Dublin council areas, the limit is €1,000 for a family with three children, while it is €950 in the Fingal County Council area. The limits are lower for households with fewer or no children.

The Department of Social Protection conducted an analysis into the payments which found that a 10 per cent increase in limits would cost €31 million per year, of which €20 million would go towards people in Dublin, Cork and Galway.

The department’s research claims this would only bring an additional 40 properties within reach of those in receipt of rent supplement, and only 16 of those would be in Dublin.

The Department of Social Protection claims this justifies its approach of reviewing the limits on a case by case, although this has been challenged by others.

“The department has implemented a targeted 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,” it says.

“The circumstances of tenants are considered on a case-by-case basis and rents are being increased above prescribed limits, as appropriate. This targeted approach has assisted over 7,100 rent supplement households nationwide to retain or acquire rented accommodation through increased rent payments.

“The additional full year cost of meeting the increased rental costs for the 7,100 cases assisted is some €18 million.”