Money spent on Rent Allowance Scheme should be used to fund social housing

In an address today to the Oireachtas Committee on Jobs, Social Protection and Education, officials from the Departments’ of Social Protection, Environment, Community and Local Government discussed  Rent Supplement Scheme (RSS) and the Rental Accommodation Scheme (RAS).

Dublin South West Sinn Féin TD Seán Crowe, who sits on the Committee, said that the vast sums of money being paid to private landlords through  rent supplement and RAS schemes should and could be put to better use.

Deputy Crowe said:

“Both rent supplement and RAS represent a considerable transfer of public funds into the pockets of private landlords. Their total budget for 2011 was €641 million, a massive sum of money particularly in the current economic climate.

“When the scheme was established in 2004, the expectation was that over a period of years the numbers transferring from rent supplement would be sufficient to ensure that recipients with long term need would be moved to RAS or other social housing options. At that time, the estimated figure expected to transfer from short term short term income support to longer term social housing support was 5,000. Over the past six years the number of people receiving rent supplement has risen annually and the number is now double the initial estimate.

Surely he vast amounts that are being paid to private landlords would be better used to pay for permanent long term social housing. Many of the properties owned by NAMA could be used to rehouse people for a fraction of the expense that is being paid through rental supplement and the current RAS scheme.

“At today’s meeting, I pointed out that there are far more cost-effective options that make long-term economic sense and which if enacted would protect families who are struggling to afford accommodation.

It also time that   the government  bring forward legislation releasing suitable NAMA properties to local authorities and their tenants.

This would overnight reduce those in the private rented sector, reduce local authority housing waiting lists and would save millions on rent supplement spending.

“Some of the savings money could also be used to make many of the unfinished  NAMA properties ready for families tenancy and allow them settle and add permanency to their lives.

“This simple step would save money and transform thousands of  families lives overnight. All it needs is the political will and courage to made this radical and commonsense solution a reality.”