Increasing rent supplement ‘could cost €86m more a year’

Increasing rent supplements would cost an extra €86m a year and push those on low incomes out of the market, Kevin Humphreys, minister of state at the Department of Social Protection, said.

Tue, 31 Mar, 2015 - 01:00

Dan Buckley

However, homelessness charities say the Government’s refusal to increase the rent supplement could put hundreds of families out on the street.

One group, Focus Ireland, has indicated that it may seek a High Court injunction to test the legality of the Government’s position.

Mr Humphreys has said that rent supplement is being increased on a case- by-case basis, but that the Government will not add to rent inflation by increasing rent supplement across the board.

Speaking on RTÉ’s News At One, Mr Humphreys said 70,000 tenants are already receiving rent supplement, representing about 35% of the market.

He said if the rent supplement was to be increased, it would be at a further cost of €86m to the taxpayer and it would push people on low incomes and students out of the rental market.

Mr Humphreys added that the lack of supply needs to be tackled and that was what the Government was doing.

“There’s a lot of people on low incomes and middle incomes that are renting at the moment, and every single one of these groups are finding it very difficult to access rental accommodation because of the shortages out there,” he said.

The Simon Communities in Ireland have warned that vulnerable people and families are being forced into homelessness daily.

Many people are stuck in emergency accommodation for far too long because of rising rent, housing shortages, and inadequate rent supplement payments.

Figures last week from the ESRI showed an increase of 5.8% in rents nationally over 2014, following a 3% increase in 2013.

“It’s clear that there is a substantial gap between rent supplement and Housing Assistance Payment caps and the actual rents being sought,” said Niamh Randall, national spokeswoman for the Simon Communities.

“This gap makes it virtually impossible for most of the people we work with to access private rented housing; it is preventing them from moving out of homelessness. People who are homeless or on the very edge of homelessness currently have no hope of accessing the housing they need.”

Mike Allen, head of advocacy for Focus Ireland, yesterday accused Tánaiste and Social Protection Minister Joan Burton of signing the eviction notice of hundreds of families in the coming months.