[Article] Rent supplement flawed, say charities

Victor · 09-04-2003 6:05pm #1

Supplementary Welfare Allowance is administered by community welfare officers of local health boards, who are in turn reimbursed by the Department of Social and Family Affairs

http://home.eircom.net/content/irelandcom/topstories/513779?view=Eircomnet

Rent supplement flawed, say charities
From:ireland.com
Wednesday, 9th April, 2003

The rent supplement scheme is not working and the situation of the most vulnerable housholds is actually being made worse by the scheme, a report to be published today finds.

In their joint report, Rent Supplement in the Private Rented Sector, the housing charity Threshold and the citizens' information network, Comhairle, call for an "immediate review on the ceilings on rent supplements" and the introduction of a comprehensive housing benefit, covering all housing subsidies.

Low-income households are encountering enormous difficulties finding affordable housing, the charities say, made worse by "a limited and complex rent assistance scheme".

They say the rent levels set as "reasonable" by health boards in some parts of the country are "not keeping pace with current market conditions and related rent increases". Rent supplement is limited to the "reasonable rent" level set by health boards.

Both charities say their staff have encountered examples of landlords and tenants agreeing to declare a lower rent to community welfare officers so as to be eligible for the supplement, "which can land people in debt".

They express particular concern at the decision last November by the Department of Social and Family Affairs to freeze maximum rent ceilings, which "could have serious consequences for the most vulnerable".

Mr Tom Daly, chairman of Comhairle, said that while rent supplement had become a key instrument in social housing, it had happened in "an unplanned and unintegrated manner".

"In effect this scheme of 'last resort' has become a corner stone of social housing provision".

The report says: "Numerous difficulties were identified in the operation of the scheme, including landlords refusing to sign forms; the inability of some tenants to provide deposits; and community welfare officers facing the dilemma of refusing rent to properties below minimum standards, and ultimately making people homeless." There is also evidence, the report finds, that some landlords refuse to take rent supplement tenants.

The households encountering the worst difficulties under the rent supplement scheme are those with children, young adults, asylum-seekers and former local authority tenants.

In 2001, 45,000 people were in receipt of rent supplement, a figure that is likely to have increased. In 2001 the scheme cost the Exchequer €179.5 million. Lone parents accounted for 20 per cent of recipients and asylum-seekers 11 per cent.

The report concludes that a comprehensive housing benefit "covering all housing subsidies including the local authority differential rent scheme, is now long overdue".

Ms Aideen Hayden, chairwoman of Threshold, said a fair and inclusive system of social housing support had to be developed "for those who cannot compete for a home in the private market".

"Most urgently, the Department of Social and Family Affairs must instigate a review of the rent supplement ceilings to ensure no household has to endure emergency accommodation, overcrowding or financial distress because of the new regulations."

shoegirl · 14-10-2003 2:47pm

Rent allowance, or more correctly, "supplementary welfare allowance" is not officially a "benefit." It is a "discretionary" rather than a statutory benefit which means that it is not intended to pay the full amount. It seems to me that this is part of the problem. A properly though out system of housing subsidy would both simplify the process for tenant and landlord.

Secondly, there's a strong school of thought, that believes that this is an unacceptable situation as it is basically a huge subsidy to profit-making landlords. While people are calling for the government to take away the miserly 20% freebie on the SSIA scheme, the government are giving away up to 95% of private rents for the 45,000 rent allowance tenants. This is basically cash in landlords pockets.

Thirdly, there is no real enforcement of minimum conditions for private rented accomodation. Most RA tenants occupy the lower end of the market - the poorest quality, cheapest flats and houses. In fairness, many self paying tenants get the same treatment - and have to foot the bill entirely.

I think establishing a statutory rent subsidy would start to improve the lot. Most importantly the concept of making tenants pay towards rent when they are entirely dependent on benefits is unfair. At the same time, if you are a householder or non tenant, you get nothing, so its an essentially unfair benefit.

But ultimately the biggest problem is with the private system itself - its a free for all. Many landlords I know only take cash so they don't have a tax liability. There's no check up on providers to ensure they pay tax. Revenue Commisioners should send out inspectors to check out all landlords for tax. The clawback would pay for more social housing.

[Article] Rent supplement flawed, say charities

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