The government is reducing rent supplement.

Everyone must now pay at least €30 a week towards rent in private accommodation. But on top of that, there are new maximum rent caps.

If you live in the Dublin area, for example, the maximum rent you are allowed is €475 a month for a single person. Once you deduct your own contribution of €120 a month, the social welfare will only provide you with €355.

But remember this is the maximum.

Local social welfare offices can impose even lower rent caps. So in certain parts of the city, they will give you a lower rental supplement.

People on social welfare are getting review letters telling them to supply information on accommodation. It is a way of cutting your rent supplement.

If your rent is above the maximum, you will be told to leave your accommodation because social welfare will no longer pay any supplement. You will get about two months to leave. In other words, people are being thrown out on the street and being made homeless.

Housing crisis

These moves are a scandalous attack on poor people. Their sole purpose is to pay off bondholders and bankers.

The reality is that there is already a housing crisis in Dublin. Everyone knows that it is hard to get accommodation for under €475 a month and so people are being forced to make ‘under the counter’ payments to their landlords.

Already some people have to contribute €50 or €60 a week from their dole just to live.

A better policy

The Minister for Social Protection, Joan Burton, says these attacks are necessary because the state is spending €500 million in rental supplement to private landlords. But there is a better policy for dealing with this.
1.
The government could bring in rent controls. Landlords should be ordered to reduce rents and no increases should be allowed during this economic emergency. After all, social welfare and wages have been cut – so why not rents? Rental controls exist in New York and Berlin. So why not Dublin?

2. The government could provide social housing. The state is now the biggest property owner in the world through NAMA. Some its houses and apartments should be used for social housing.

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