The Government has announced it is to proceed with the transfer of responsibility for recipients of rent supplement with a long-term housing need, from the Department of Social Protection to housing authorities using a new Housing Assistance Payment.

This joint proposal by the Minister for the Environment, Community & Local Government, together with the Minister for Housing and Planning, and the Minister for Social Protection, arose out of a commitment in the Programme for Government to review the operation of the rent supplement scheme and bring forward appropriate proposals to integrate rent supplement and social housing support systems. This commitment in the Programme for Government followed on-going concerns about the evolvement of rent supplement into a long-term housing support; which it was never designed to be. It was also one of the key reforms announced in the Minister for Housing and Planning's Housing Policy Statement in June 2011.

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It is intended that the implementation of these changes will bring a number of benefits for householders, the State and housing authorities, including:

• enabling job take-up by tenants by removing one of the primary disincentives to returning to employment;

• contributing towards the creation of a higher quality, private rented sector through improved standards;

• providing a more integrated and streamlined service for households seeking support from the State to meet housing costs;

• allowing local authorities more flexibility in assisting those in need of social housing support.

Both Departments have been working closely on the legal, policy and operational issues involved in the project, including the provision of a mandatory deduction facility for local authority rents. It is proposed to test the HAP payment in a number of selected local authorities early next year, following the enactment of the necessary legislation.

Plans for the test phase will be developed by a recently established project implementation group which includes representation from the local authorities involved in the test phase. Detailed legislative provisions and details of how the direct deduction facility can best be supported will be brought to Government in the autumn.

Minister for Housing and Planning, Jan O'Sullivan, TD, said: "The introduction of a new HAP payment, operated by local authorities, represents the largest reform of housing support in a generation. The current system isn’t fit for purpose and it needs to change. The new HAP payment will eliminate poverty traps, encourage people to take up work and bring a new 'joined-up' approach to housing support."

(CD/JP)