4,000 people ‘will be forced onto the streets’ by cutbacks

MORE THAN 4,000 Cork people will be forced to protest on the streets if the plan to cutback the rent allowance scheme is implemented in next week’s Budget, Labour councillor Michael O’Connell has claimed.

Social Welfare Minister Mary Coughlan revealed in the Book of Estimates that she plans to cut rent allowance for people on the local authority housing list for the first six months they are in private rented accommodation.

But Cllr Michael O’Connell told Cork City Council that any interference in the rent allowance scheme would have a devastating effect on over 4,000 people’s ability to rent a house on the private market.

“These people will be forced on to the streets of Cork if the Government persists with their plans to axe the rent allowance for the first six months,” Cllr O’Connell said.

Private rented accommodation is considered an alternative option and supplements the local authority housing programme, the Labour councillor said. “Any cutbacks will particularly affect single people and lone parents who may not be in a position to come up with rent deposit for the first six months,” he said.

A three-bedroomed house can cost up to €200 a week and two-roomed flats cost up to €150 a week.- It will be very difficult for people on low incomes to come up with this money without the support of the rent allowance, Mr O’Connell said.

But a Department of Social Welfare spokesperson said the minster intends to cut the rent allowance for the first six months in private rented accommodation because there was widespread abuse of the system.

Mr O’Connell also called for the administration of the rent allowance to be transferred to local authorities who he said have a better understanding of people’s needs on the ground. City Manger Joe Gavin said discussions are currently underway between the department and local authorities about the transfer of this scheme to them.

Mr Gavin said he would support such a transfer provided that the necessary funding and resources were provided to operate the scheme.

“As the housing authority, a local authority would be the best agency to operate this scheme - provided we have the best resources come with it,” he said.

The city manager said under the housing assessment programme 2,282 Cork city people were deemed to be in need of housing and of this number.

1,110 are in receipt of rent allowance.