Landlords accused of 'scam' over rent supplement tenants

SOME LANDLORDS are practising a “scam” by housing social welfare recipients availing of rent supplement in sub-standard accommodation, an Oireachtas committee was told yesterday.

Fine Gael TD Catherine Byrne said she had visited numerous premises where rent supplement beneficiaries were housed and which were below standard. In most cases, it didn’t appear that the accommodation had been officially inspected.

She instanced one “kip”, the basement of a four-storey building, in which a young woman and her two small children were living. “There was no access to their own toilet, no garden and the front door led directly on to the main road,” said Ms Byrne. “It was so appalling you wouldn’t put a dog in it, never mind a child.”

Tony Quilty of the HSE’s community welfare service said the sums paid on rent supplement had risen significantly, from €388 million in 2006 to €432 million last year. His colleague John Lyne said payments to landlords were fully traceable by the HSE, the Department of Social and Family Affairs and the Revenue Commissioners.

The number of people receiving Mortgage Interest Supplement has increased from 3,000 in 2006 to 7,000 last year, Mr Quilty said.

Fianna Fáil TDs Michael McGrath and Thomas Byrne both asked for reassurance that the “urban myth” that foreign nationals were disproportionately reliant on social welfare was indeed an urban myth.

Mr Quilty replied that all applicants were treated exactly the same.

Anne Marie O’Connor, business manager of Mabs (Money Advice and Budgeting Service) told the committee some debt collection agencies were subjecting borrowers to hourly phone calls and calls after business hours.

Mabs was experiencing a massive increase in its caseload, up 43 per cent in the past three years, she said. Mortgage-holders now account for over one-third of clients.

Ms O’Connor said some people had been given subprime mortgages which should never have been granted, but their options now were limited. She said that in a growing number of cases people wanted to hand back the keys.