Social welfare rent allowance to be slashed by up to 36pc
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MINISTERS moved yesterday to slash social welfare rent allowance payments in a development described as "regrettable" by charities.
Critics say the cuts of up to 36pc could force tenants to haggle with landlords for lower rents -- but some landlords could insist on maintaining the higher rates.
The Department of Social Protection has introduced cuts of more than €250 a month, saying the new rates reflect rental rates in the market.
The Government said rents had fallen since 2007 and in some counties the allowances being paid out were too high compared with the private market.
"The current regulations that set the maximum limit for rent supplement have served us well but they have now served their time," said Social Protection Minister Eamon O Cuiv.
"It is essential that State supports for rent are kept under review, reflect current market conditions and do not distort the market in any way."
But St Vincent de Paul said the move would put pressure on vulnerable tenants who would have to negotiate lower rents directly with their landlords.
"Our concern is that landlords will ignore the new limits," a spokesperson for the charity said. "It is unfair that vulnerable families are forced to seek to negotiate their rent downwards."
The majority of the cuts will be in rural areas like counties Leitrim, Roscommon and Mayo, where rents have fallen more dramatically than in the cities.
Families
Following the move, for example, the allowance band for couples or one-parent families with one child has dropped from between €568-€932 to €400-€930. The allowance for couples or one-parent families with three children has been reduced from between €663-€1,110 to €500-€1,100.
But the supplements for single people are to remain largely untouched.
The cuts will only apply to tenants who are entering into new leases or renewing leases at first and will be applied to existing claims as they come under review.
But St Vincent de Paul said the move was regrettable.
"When the rent supplement for tenants was reduced last year the department said it 'hoped' landlords would reduce rents accordingly," a spokesperson said.
Mr O Cuiv said the department made its decision following a review of rents around the country. They will target the 95,000 households supported by rent supplement.
Since the department's last rent review in June, 2009, rental values have fallen on average by 9.5pc, according to the Central Statistics Office.
The minister added that changes would provide annual savings of €20m this year out of a total cost of €500m.
Meanwhile, Mr O Cuiv again defended his decision to cut one-parent family payments.
Under the Social Welfare (Miscellaneous Provisions) Bill 2010, parents whose youngest child reaches 13 will no longer be able to claim such one-parent family payments.
The bill, which also includes plans to disqualify people from Jobseeker's Allowance if they refuse an offer of suitable employment, has been been slammed as "harsh" and "heartless" by unions and opposition parties.
- Ailish O'Hora Public Affairs Correspondent
Irish Independent
