HSE gives notice of reduced rent supplements

[BoyRacer]

HSE gives notice of reduced rent supplements - Emma Kennedy → sbpost.ie/news/ireland/hse-g … 48555.html

The Health Service Executive (HSE) has cut the rent supplement it pays and told its recipients to request that their landlords reduce their rent.
Rent supplements are paid to people who are living in private rented accommodation but are not able to cover the cost of the accommodation from their income.
They are typically people whose only income is a social welfare or HSE payment and who satisfy certain other conditions.
The amount of the rent supplement is calculated by the local HSE’s community welfare officer and relates to certain caps, based on the local rental market.
In recent days, the HSE has written to a number of rent supplement recipients highlighting the reduced payments.

there is more

[Mossy_Heneberry]

The quicker they abolish this subsidy to landlords the better.

[Subway1]

For example, a tenant in Finglas in Dublin 11 was told that their supplement would cover a one-bed apartment up to €700 a month, a two-bed up to €800 or a three-bed up to €900

sweet jesus, thats a joke, right?

[Coles2]

@Mossy_Heneberry

The quicker they abolish this subsidy to landlords the better.

+1. And now is the time to do it while there is a surplus of decent rental accomodation. No doubt there will be plenty of landlords who will refuse to lower their rents, but the market will encourage them.

[Bottler]

Glad to see it !

Way back in 2007 a canny exlandlord of mine had a number of properties , some of which were rented out to social welfare recipients. His preference ’ of course ’ was to rent to the ’ professional couple ’ but if that could not be done then he’d opt for the social which he called safe and easy money What a slime

[Arbitrager]

Rent Supplement may be better in the long run as opposed to building large
council estates that turn into ghettos. It’s just the cost to the tax payer and
lack of incentive to return to work, anyone know what the gross would be in
this scenario, how much would you have to earn to get 45,000 net after tax.

Standard couple who claim not to live at same address with 3 children.
20,384…196.00 x52 x2 Job-seekers Allowance
4,649…29.80 x52 x3 + 3 children
5,844…487.00 x12 Children’s allowance
10’800…900.00 x12 Rent Supplement 3 bed
640…20.00 x32 Fuel Allowance 32 weeks
600…200.00 x3 Back to School Allowance

42,917 +10 other programs…Medical card, School Books Grant Scheme,
one off payments, Household Benefits Package.
welfare.ie/EN/Schemes/HouseholdBenefits/Pages/default.aspx

[HoardAndSurvive]

This is the best news Ive heard for a while. Rent supplement was putting a floor under rents and this will lower that floor.

Cheaper rents all round!

[temene]

For example, a tenant in Finglas in Dublin 11 was told that their supplement would cover a one-bed apartment up to €700 a month, a two-bed up to €800 or a three-bed up to €900

I was trying to figure that €700 out.
A single person is currently entitled to rent a place for €528 pm, unless it is a couple in a one-bedroomed flat then it would be €806 pm

[TheHiddenHand]

How will this affect property prices? Surely this will affect the yields on rented properties? Does this not affect Brian Lenihan’s prediction that property prices have stopped falling?

[wii4miinow]

@Arbitrager

Rent Supplement may be better in the long run as opposed to building large
council estates that turn into ghettos. It’s just the cost to the tax payer and
lack of incentive to return to work, anyone know what the gross would be in
this scenario, how much would you have to earn to get 45,000 net after tax.

Standard couple who claim not to live at same address with 3 children.
20,384…196.00 x52 x2 Job-seekers Allowance
4,649…29.80 x52 x3 + 3 children
5,844…487.00 x12 Children’s allowance
10’800…900.00 x12 Rent Supplement 3 bed
640…20.00 x32 Fuel Allowance 32 weeks
600…200.00 x3 Back to School Allowance

42,917 +10 other programs…Medical card, School Books Grant Scheme,
one off payments, Household Benefits Package.
welfare.ie/EN/Schemes/HouseholdBenefits/Pages/default.aspx

In regard to the above, just a question about your Rent Supplement.
Won’t that be higher?
i.e. won’t the non-working parent who is the primary minder of the 3 kids get the 900 supplement per month for 12 months and then in addition won’t the other non-primary parent be benefited also with a Rent Supplement for a two bed (i.e. one bed for parent and another bed for nights over), i.e. an additional 12 times 800 = 9,600 Euro Additional to the above?
So that brings the total income to 52517 Euros, plus all the other golden benefits that our Commie state gives to those who are not working?

Or have I got that wront?

[yoganmahew]

This’ll keep TalkToJoe busy for a couple of days…

[Coles2]

@yoganmahew

This’ll keep TalkToJoe busy for a couple of days…

+1

‘Protest? But what good would it doooooo?’

[Arbitrager]

@wii4miinow

@Arbitrager

Rent Supplement may be better in the long run as opposed to building large
council estates that turn into ghettos. It’s just the cost to the tax payer and
lack of incentive to return to work, anyone know what the gross would be in
this scenario, how much would you have to earn to get 45,000 net after tax.

Standard couple who claim not to live at same address

with 3 children.
20,384…196.00 x52 x2 Job-seekers Allowance
4,649…29.80 x52 x3 + 3 children
5,844…487.00 x12 Children’s allowance
10’800…900.00 x12 Rent Supplement 3 bed
640…20.00 x32 Fuel Allowance 32 weeks
600…200.00 x3 Back to School Allowance

42,917 +10 other programs…Medical card, School Books Grant Scheme,
one off payments, Household Benefits Package.
welfare.ie/EN/Schemes/HouseholdBenefits/Pages/default.aspx

In regard to the above, just a question about your Rent Supplement.
Won’t that be higher?
i.e. won’t the non-working parent who is the primary minder of the 3 kids get the 900 supplement per month for 12 months and then in addition won’t the other non-primary parent be benefited also with a Rent Supplement for a two bed (i.e. one bed for parent and another bed for nights over), i.e. an additional 12 times 800 = 9,600 Euro Additional to the above?
So that brings the total income to 52517 Euros, plus all the other golden benefits that our Commie state gives to those who are not working?

Or have I got that wront?

Oh I’m sure there are ways and extra programs to boost your benefit by 10k
but I didn’t want to give an example of the absolute highest recipients.
Lets just say the non-primary parent lives with his Ma.

It just struck me that even when we had 4.5% unemployment in 2006 we still had 250,000
on the dole and with these levels of payments why would they go looking for work.
Van driver 28,000 + wife works in Tesco 23k = 51,000 and they have to pay tax.
You would feel like a fool.

[Subway1]

@Subway_

For example, a tenant in Finglas in Dublin 11 was told that their supplement would cover a one-bed apartment up to €700 a month, a two-bed up to €800 or a three-bed up to €900

sweet jesus, thats a joke, right?

ive had a chance to recover from shock.
if i rent a 3 bed in sutton for 950, why would a finglas 3 bed need to cost 900?
is it becuase there is an artificial floor in the market die to govt intervention? never!!!

these stupid reliefs are propping up the market and then they can only reduce them gradually as it would cause difficulty for the social tenants when competing with private tenants. its the other way aroud for crying out loud.

that example above states that a person on the social would be mad to get a job, too right at those amounts.
on the other hand, the working person would be mad to rent in finglas where he is competing against social tenants for crap houses.
move out to the coast, into the city, nearer to dundrum (whatever floats your boat)

in fact, i would be interested if someone could provide a social:private tenant ratio breakdown for the dublin region and then a chart linking that ration to asking prices in rent could be worked on.

[Rick_Flair]

@HoardAndSurvive

This is the best news Ive heard for a while. Rent supplement was putting a floor under rents and this will lower that floor.

Cheaper rents all round!

Thats how it should pan out. Here’s hoping.

[tullibardine]

I have a few issues with this,

1. As rents fall, working people will move to better areas leaving large areas of housing to only the unemployed, creating ghetto like estates with poor schools and services.
2. Many social tennants will fail in their negotiations with landlords and will absorb the shortfall in rent allowance from other benefits making families poorer.
3. There will be a prolonged period where landlords will try to avoid accepting social welfare tennants causing increased homelessness for some people.
4. The combined result will be the creation of a massive poverty trap making it increasingly difficult to get people back to work.
   Basic economics shows that the government can’t afford to keep paying out as much in social welfare but they should be doing the negotiations not the tennants.

[sharper]

@tullibardine

Basic economics shows that the government can’t afford to keep paying out as much in social welfare but they should be doing the negotiations not the tennants.

The entire scheme is a shambles.

Either they should pay a fixed amount to the tenant and let him negotiate with the landlord (if tenant negotiates lower he pockets the difference) OR a variable amount negotiated directly with the landlord. This is the “worst of both worlds” that’s typical of the Irish government - under the current system the tenant has neither the incentive nor bargaining power to negotiate lower rents so the government is stuck lowering the allowance in small decrements and hoping it all works out.

[Subway1]

@sharper

The entire scheme is a shambles.

it certainly is, reduce the terms of this scheme to 0 months, cancel rent allowance and let the govt use its collective bargaining power to force some real reductions

environ.ie/en/Developmentand … ionScheme/

[kerrynorth]

@sharper

@tullibardine

Basic economics shows that the government can’t afford to keep paying out as much in social welfare but they should be doing the negotiations not the tennants.

The entire scheme is a shambles.

Either they should pay a fixed amount to the tenant and let him negotiate with the landlord (if tenant negotiates lower he pockets the difference) OR a variable amount negotiated directly with the landlord. This is the “worst of both worlds” that’s typical of the Irish government - under the current system the tenant has neither the incentive nor bargaining power to negotiate lower rents so the government is stuck lowering the allowance in small decrements and hoping it all works out.

The best solution is to fix a maximum percentage of the rent up to a specified maximum, say 70%, that will be paid by the State with the tenant meeting the rest from their welfare payments. That way there is an inbuilt incentive for the tenant to get value for money and the dole/childrens allowance etc is already high here relative to the UK this is one way of reducing its cost to the State.

[Open_Window]

The State is a shambles.