The Government measure capping rent supplement levels had led to a hidden poverty, forcing many tenants to top up officially declared rents, leaving them short of heat, clothing and food, the chairperson of Threshold, Ms Aideen Hayden, said yesterday.
Ms Hayden said that since the cap was introduced in January 2002 it had brought even greater poverty.
"The cap has brought a lot of deprivation and hidden poverty. It won't be in the statistics because it is a disguised poverty and, because they have to top up the rents, they can't afford the basic necessities like food, clothing, heat, shoes," she said.
The maximum rent a single person on social welfare benefits can incur in the Dublin area and still qualify for rent supplement is €107 per week. If the rent is more, they forfeit the supplement which provides for some 90 per cent of the rent bill.
Ms Hayden said the situation had led to landlords and tenants colluding as recent research showed that the average lowest rents were €120 to €125.
"Our experience is that this is quite common as they have no choice. For someone on basic social welfare making up the difference means a lot of money," she said.
Threshold yesterday issued its annual report for 2002 and a review to mark 25 years since its foundation.
In the report, Ms Hayden criticised Government measures for failing to provide social housing which she described as grossly inadequate and leaving many living in poor quality rented accommodation.
The need for reform of the rented sector had never been more acute, she said. Lack of enforcement by local authorities of minimum standards of accommodation continued to be a serious problem, with over half the properties surveyed by the authorities falling below standard.
"Constant risk of homelessness faces many in our society daily, with grossly inadequate resources spent on prevention. It is no wonder therefore that the need for our services continues to rise," Ms Hayden said.
Mr Patrick Burke, director, said they would continue to work with other organisations based on an approach for the right to housing and social cohesion.
The report shows that in Dublin over 8,000 clients either went to the Threshold offices or telephoned with their case followed up. In Cork, there were 762 queries and the Galway office dealt with over 5,000 people.
The 25-year review includes contributions from the Minister for Housing and Urban Renewal, Mr Ahern, and many people from a cross-section of housing interests who also attended the launch in Dublin yesterday,
Mr Lance O'Brian, a Threshold director and founding member, said in the review: "As the organisation celebrates 25 years, it can look back with some satisfaction at what has been achieved during that period, but it must also look ahead and continually strive for justice for all in our housing system and the acceptance of the right to housing as a fundamental right in our country."