Landlords hit as rent welfare cut
Published 16/01/2012 | 05:00
LANDLORDS renting their property out to welfare recipients will take a hit of as much as €270 a month as the Government cuts rent supplements in a bid to save €22m from its annual €500m welfare rent bill, writes Fiach Kelly.
Rent supplement is paid to people living in private rented accommodation whose only income is a social welfare payment, such as the dole.
A review by the Social Protection Department found the State was helping to foot rental bills to landlords around the country way in excess of market value, mostly outside Dublin.
New limits based on local market rates come into effect from this month for all new claimants.
The Department of Social Protection will write to existing recipients of rent allowance informing them of the new limits for their area as their lease comes up for renewal.
If their landlord refuses to accept the lower rate, the renter will be told to find alternative, cheaper accommodation.