Minister Mary Hanafin is wasting millions of euro every year by leaving people for long periods on a short-term rent supplement scheme, Fine Gael spokesperson Michael Ring TD has revealed.
Speaking after reports that the Government is spending more than €1 billion a year on emergency social welfare, Deputy Ring said around half of this is being spent on rent supplement, instead of the much cheaper and more effective alternative.
“Some 91,000 tenants are currently receiving rent supplement, at a cost of around €500 million. This measure is supposed to be a short-term income support to hep with the cost of private accommodation. Instead, large numbers of claimants have become dependent on the scheme,” Dep Ring outlined.
“After 18 months on rent supplement, claimants are supposed to transfer to the Rental Accommodation Scheme which is administered by local authorities. However, the transfer rate from rent supplement on to RAS has been abysmally slow, with just 12,000 moving since the scheme was set up, and another 12,000 moving to other social housing options.
“The net result is that Mary Hanafin’s department is spending too much on emergency rent payments, and has become a provider of accommodation, while its community welfare offices are being clogged up by processing housing payments,” said the Westport Deputy.
He outlined a number of reasons why tenants are better off on the Rental Accommodation Scheme: the local authority is responsible for negotiating rent rather than the tenant; RAS housing provides more secure long-term tenure; it ends the practice of paying top-ups on rent; it frees up community welfare offices; and it removes poverty traps and raises housing standards.
