‘Renters can claim over €500 a month’

A SINGLE person claiming rent supplement can receive in excess of €500 a month depending on what part of the country they live in.

Figures from the department of Social Protection obtained by the Irish Examiner reveal the large sums claimants can get ranging from €390 for a single person to €1,050 for a couple with three children.

An analysis of the amounts in comparison to average rents advertised on popular letting website Daft.ie shows the scheme could be paying people far in excess of what they need.

In Galway, for example, a single person in receipt of the maximum amount – €468 a month – could rent a luxury double apartment. In Roscommon, a single claimant could potentially rent a three bedroom house.

Maximum amounts of other parts of the country also reveal the excessive amounts people can receive.

For example the maximum amount a single person living in Cork could get is €468. A couple with no children can get €610 and a couple or one-parent family can get a maximum of €705 a month.

The corresponding amounts for Dublin are – a single person €529, a couple with no children, €800 and a couple or one parent family with one child €930.

There are 96,000 people in receipt of rent supplement at a cost of about €500m annually.

There have been many calls for reform of the scheme as rent supplement is paid directly to tenants. It has been argued there is no incentive for them to negotiate and so the state pays the price.

Housing charity Threshold said the system needs to be reformed so that rent supplement payments to be made directly to landlords rather than tenants.

Aideen Hayden said the indirect nature of this relationship means the State is reliant on tenants to negotiate a good deal on its behalf.

“If the system was changed to one whereby payments were made directly to landlords by the State, there would be significant improvements for all concerned. The State could negotiate cheaper rents with landlords and ensure only those who met all their legal obligations rented properties under the rent supplement scheme,” she said.

Ms Hayden said the reform would also mean landlords could benefit from the reassurance that rents owing would be paid directly into their bank accounts each month. This reform would enable tenants to avail of better quality accommodation because they would have access to wider choice.

Last year, the Bord Snip report suggested re-examining the rent supplement payment on a regional basis, and reduce length of time on rent supplement. It projected this could save €35m annually.