Changes to Rent & Mortgage Interest Supplements from Jan 2012

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gipimann

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While there were no changes to SW payment rates in the recent budget, there were a few changes to Rent & Mortgage Interest Supplement payments, which take effect from this week.

1. Minimum Contribution
The minimum contribution which persons claiming Rent or MIS must pay has been increased, and for the first time, there is a different contribution for one-person (single) and two-person (couple) households.

Up until Dec 2011, the minimum contribution for everyone was €24 per week.

From Jan 2012, the minimum contribution increases to €30 per week for one-person households.

From Jan 2012, the minimum contribution increases to €35 per week for two-person households.

The amount contributed by each household could be higher than the minimum rates depending on income and circumstances.

2. Maximum Rent Limits
New Maximum Rent Limits have been introduced from Jan 2012. The new limits apply to both new and existing Rent Supplement tenancies.

The new rates (per calendar month) may be found at the bottom of this webpage:

http://www.welfare.ie/EN/Schemes/SupplementaryWelfareAllowance/Pages/RentSupplement.aspx
 
It's great to be informed of this. I was waiting to hear about rent supplement being reduced and this is the first I'v heard of it, was it announced with the budget.

This means that rents will come down countrywide. Can you confirm one example for me to see if I understand it correctly. From the table first line single person monthly rent 450. This means the new weekly max rent is 103.84 from the current 108?

I have a new social welfare tenant and they think the limit is 108, is social welfare not informing tenants?
 
Great to hear this; it's about time the Department of Social Protection stopped putting a floor under landlords.
If you are renting don't worry, rents will fall to take account of these reductions.
 
rents will fall to take account of these reductions
Click to expand...

In some cases yes however I think it will depend on the landlords circumstances and the standard of accommodation. Time will tell... I think there will be strong demand for accommodation for a lot of years to come as people can no longer afford to buy.

But who knows..
 
Bronte,

Your calculation is correct - 450 per calendar month - 103.85 per week.

The changes to minimum contribution were in the Dept of Social Protection Budget factsheet which issued on Budget Day. As far as I can recall, the intention to review the Rent Limits was also mentioned on the factsheet.
 
Purple said:
Great to hear this; it's about time the Department of Social Protection stopped putting a floor under landlords.
If you are renting don't worry, rents will fall to take account of these reductions.
Click to expand...

You may think so but this along with everything else is putting a massive strain on landlords.
 
hi,

my rent is clearly over the limit now. will everyone get a letter about that or what should we do now? when it takes effect, next month already?
 
merille,

Some offices may issue letters or forms locally. You may get a form or letter as part of the regular review of the claim.

The new limits took effect from Jan 1st.

If you are concerned, contact your SWA Officer who deals with your Rent claim.
 
thanks gipiman,

just had a talk with my CW officer. he told me ill get letter with renewal per post and have basically 3 months to talk with the landlord about the rent. if its successful, then ill be fine. if its not i have to find some other place. hes a good man so i hope the best :)
 
Gipeman is Merille correct, do tenant's have 3 months grace with their landlord before the landlord has to reduce the rent? Has social welfare already reduced the rent amounts they pay tenants?

As an aside so much for having contracts with tenant's and being PRTB registered and not allowed to change rents but the government can ride roughshod over that.
 
The grace period that merille mentioned isn't automatic - it may be granted depending on the circumstances of the tenancy.

For example if a tenancy lease was ending in a few weeks, the higher rent might be allowed for the rest of the lease period, or a period of grace may be given to the tenant to find cheaper property if they can't negotiate a reduction with the landlord for their existing tenancy.

New applications for Rent Supplement from this week will be based on the 2012 limits and on the new minimum contribution levels.

Existing Rent Supplement recipients have had their supplement reduced to reflect the new minimum contribution levels from this week. Reductions on foot of new rent limits must be done locally by the SWA Officer.
 
My understanding is that these rates apply to new applications for rent supplement, and to review cases.

if you are already in receipt of rent supplement at a rate above the new limits, you don't need to do anything until they contact you in respect of a review. But you should prepare yourself for this applying when your file is next reviewed.

If a landlord refuses to reduce the rent, you should consider lodging a complaint with the PRTB. See here for more details about asking for a rent review http://www.citizensinformation.ie/en/housing/renting_a_home/rent_increases.html
 
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