More cutbacks to rent supports will worsen homelessness, warns charity

THE Government is undermining its own homeless strategy by slashing rent supports for vulnerable tenants.

Figures given to an Oireachtas Committee show almost 91,000 people were claiming rent supplement — a 52% increase on 2007.

Simon representatives told the Oireachtas Committee on Social and Family Affairs that slashed rent payments were not meeting rents requested by landlords.

Tenants were having to “top up” their rent supports with their own money. By doing so they risked losing their rent supplement completely as they were prohibited from paying such “top ups”.

Simon national research and policy manager Niamh Randall said the Government had pledged to end the need to sleep rough and long-term homelessness by 2010 and this had been spelt out in two government strategies.

“The Government is cutting funding from essential services working towards these goals,” she said.

“Simon Communities are under increasing pressure around the country in terms of funding with reductions in statutory funding and uncertainty in terms of voluntary donations.

“The recession means more people are at risk of homelessness, more people will become homeless and more people will turn to Simon for support.”

She said the rent supplement scheme had been slashed twice in the past year.

Under Budget 2009, the minimum contribution from tenants in receipt of rent supplement was increased from €13 to €18 a week.

In the Supplementary Budget 2009, rent allowance was restricted to those renting or in homeless accommodation for the past six months.

The minimum contribution was further increased to €24 and the maximum rent limits were reduced by between 6% and 12%.

In addition, those already in receipt of rent allowance had their payment cut by 8% to encourage landlords to reduce their rents.

“These changes put more individuals and families at increased risk of homelessness and will continue to do so,” said Ms Randall.

“The combined increase in the tenants’ contribution from €13 per week to €24 per week represents an increase of 85%.”

Ms Randall said that these changes meant the weekly income of a single person in receipt of rent allowance fell from €186 a week to €172 a week.

Marlene O’Connor of Galway Simon said tenants were the “weakest part” in the triangle between the State, the landlord and the tenant yet they were expected to negotiate with landlords for a reduction in rent.

Labour deputy Roisín Shortall said the committee should take up the issue of rent supports with Finance Minister Brian Lenihan.

Fine Gael’s Seymour Crawford said a drop of 85% was “unacceptable”.

Fianna Fáil Senator Larry Butler called on NAMA to bring housing into the scheme and to allow local authorities buy up accommodation.