Most vulnerable hit in government spending estimates

BY JOANNE CORCORAN

Nobody expects surprises any more from this government's November estimates or actual budgets. But last week's slap in the face for those seeking rent allowance came as a shock to even the most cynical budget analysts.

Over 140,000 people are currently on housing waiting lists in the 26 Counties, and the private renting sector has been seen for some time as an interim measure. Rent Allowance can be claimed if a person or family is earning under a certain amount, usually a very small sum, and is often claimed by people waiting to be housed or simply with very low incomes. Under the proposed changes, announced by Minister for Social & Family Affairs Mary Coughlan, health boards can now turn away applicants who haven't been renting for at least six months beforehand. The government has claimed that millions of euros will be saved as a result.

Housing organisations across the country have slammed the proposed cuts, saying they will force 60,000 households into poverty.

Focus Ireland immediately hit out at the new measures, with Chief Executive Declan Jones saying: "We now have the crazy situation where a person who has lost their job, could find themselves homeless under the new rule.

"With average rents running at €800 a month, at least, for a one-bed apartment, this means people could be expected to pay nearly €5,000 euro in rent over six months before they qualify for rent supplement."

Jones pointed out that while the Minister has said there will be provision for exceptions in relation to people who are homeless or where there are "other compelling reasons", these have not been specified and could vary significantly across different health board areas.

Threshold was also severe in its criticism, saying that the rent allowance represents the only safety net for large numbers of people, in particular lone parents and single people in unemployment, on the brink of homelessness.

"There are over 60,000 recipients of rent supplement in this country and they are not renting at the bottom end of the sector through choice," Threshold director, Patrick Burke said. "This change will mean that people who need to access rented accommodation as a result of a family or marriage break up, losing a job, or those experiencing social or personal difficulties, are now out on a limb with no support at their most urgent time of need.

The lone parents' group, OPEN (One Parent Exchange and Network) confirmed the view that thousands could be forced into emergency accommodation. Responding to the details of the spending, the group claimed that changes affecting the rent allowance provision could force parents into emergency bed and breakfast accommodation.

St Vincent de Paul (SVP), which recorded a staggering 94% rise in calls during the third quarter of this year, said the cuts would create new poverty traps.

The Simon Community said the changes in rent supplement criteria were a backward step, while Barnardos said the cuts were short-term measures that would cost society in the long term.

Sinn Féin TD Caoimhghín Ó Caoláin called on the Taoiseach to clear up the confusion surrounding two different views expressed by government ministers in relation to the rent supplement. Ó Caoláin quoted Noel Ahern, the minister responsible for housing, who last month said that those unable to afford houses would have access to social housing or income support to rent private housing. The Sinn Féin TD pointed up the newly-proposed government measure on rent allowance and asked the Taoiseach, "Who is right?"