[Article] New housing proposals to ease jobs trap

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New housing proposals to ease jobs trap
From:The Irish Independent
Thursday, 8th July, 2004

TENANTS in receipt of state assistance will be less vulnerable to greedy landlords under new housing proposals unveiled yesterday.

The Government's policy initiative will also help socially disadvantaged families to escape from an "unemployment trap" that prevents them from taking jobs out of fear of losing their rent supplements.

The initiative was announced by Mary Coughlan, Minister for Social and Family Affairs, and Noel Ahern, Minister for Housing and Urban Renewal.

It is aimed at developing more secure and longer-term arrangements for individuals who have been receiving rent supplements for 18 or more months. Rent supplements were originally designed only to help people over short-term difficulties.

The move will affect about 19,000 households which are subsidised to the tune of €100m each year.

One of the most significant changes for these households will see them no longer having to seek accommodation for themselves. Instead, accommodation will be secured by local authorities which will rent it directly from landlords on their behalf.

Ms Coughlan and Mr Ahern said yesterday this will make tenants less vulnerable to the demands of landlords.

The new initiative has been welcomed by the Conference of Religious of Ireland. Fr Sean Healy, director of CORI's Justice Commission, described it as "a substantial gain for some of Ireland's most vulnerable people. It recognises that people on long-term rent supplement are in need of ongoing housing support and puts a mechanism in place to enable this to happen."

Fr Healy estimated that of the €100m currently being paid to households receiving rent supplements for 18 months or more, two-thirds will be used to build new social housing and only a third will be used to rent property from landlords.

As a result, fewer properties will need to be rented from landlords, which will save the taxpayer money.

The initiative will particularly benefit couples who are in receipt of rent supplements because at present they cannot work without losing the benefit.

The new arrangement is to be phased in from next year and is to be fully in place by 2008.

The Department of Social and Family Affairs will continue to deal with those facing short-term accommodation difficulties, but those receiving the rent supplement for 18 months will become the responsibility of local authorities and the Minister for Housing.

David Quinn Religious Affairs Correspondent