COPE Galway Pre-Budget Submission Budget 2016

Transcription

1 COPE Galway Pre-Budget Submission Budget 2016 COPE Galway is a local Galway charity that provides a range of services to some of the most vulnerable and isolated people in Galway. The services we provide are across three main areas: Homeless Services Domestic Violence Services for women and children Services for Older People Our vision is Improved Quality of Life in a Home of your own for people affected by Homelessness, Women and Children experiencing Domestic Violence and Older People. The time to act is now! 2015 has been a difficult year for many families and individuals who have lost their homes and become homeless. The specific reasons for this have been as varied as the numbers of households affected but what is very clear is that there are fundamental underlying problems relating to housing supply, affordability and poverty which need to be addressed if this growth in homelessness is to be halted and the housing needs of those who are already homeless - many of whom are remaining so for extended periods of time provided for. COPE Galway considers that the allocation of resources through Budget 2016 should be used to tackle this issue and to address the needs of those most disadvantaged in society and not towards tax cuts for the benefit of the more well off. In this submission we identify a range of areas where additional resources need to be targeted and groups in our society who need to be given priority so that a fairer and more balanced society is achieved in 2016 and beyond. The time to act is now! Homelessness COPE Galway operates services for people who are homeless or at risk of homelessness including emergency and transitional accommodation and resettlement and tenancy support services for people who are homeless and moving on from homelessness and prevention services to people at risk of homelessness. In 2014 the organisation worked with 652 adults and 311 children affected by homelessness in Galway. Addressing homelessness is the single greatest challenge COPE Galway faces currently. The past number of months has seen a growth in the numbers of families in need of emergency accommodation in Galway. A combination of factors have contributed to this situation including families losing their housing in the private rented sector due to rising rents, landlords taking back properties for their own or family members use, receiver sales of properties and landlords withdrawing from the Rental Accommodation Scheme (RAS) resulting in tenants being served with notice to quit. 1

2 A shortage of social housing and affordable private rental housing has in turn contributed to a situation where people have not been able to find and secure alternative housing and so have become homeless and in need of emergency accommodation. Those who do become homeless are remaining so for extended periods of time for these very same reasons. Consequently COPE Galway emergency homeless services are under severe strain with an increasing number of families and individuals falling into the category of long-term homeless (in emergency accommodation for six months consecutively or cumulatively in a twelve month period). The Government policy aim of eliminating long-term homelessness by the end of 2016 was always an ambitious one but without radical action in Budget 2016 to increase the supply of social housing and provide low income households with the financial wherewithal to compete in the private rental market it will be wholly unachievable. Women and children who are homeless due to domestic violence are similarly experiencing severe difficulties in finding move on accommodation from COPE Galway s Waterside House Domestic Violence Refuge. This in turn in seriously impeding the ability of this service to respond to new presenting need with the consequence that women and their children are having to remain in violent situations in their own homes. The short term financial cost of this crisis is increasingly clear as more and more money is spent on B&B and Hotel accommodation to meet the immediate short term accommodation needs of people, very often literally on a night to night basis. Galway City experienced the biggest percentage increase nationally in this regard this year, some 7,500 percent between January ( ) and August ( 25,767). However what is not yet clear is what the long term negative impact of this will be on the lives of so many families, most especially children who are becoming homeless and what it will cost to deal with this impact into the future. In recent months John and Mary* along with their two young children became homeless when their private landlord increased their rent from 700 to 1100 per month in an annual rent review. They found themselves no longer able to afford their rent and were given notice to quit. They were placed into emergency accommodation in a Bed & Breakfast by COPE Galway in conjunction with Galway City Council at that time and have continued to be accommodated in a range of such temporary settings for over three months since. They continue to be homeless despite extensive efforts on their part to find housing involving numerous phone calls to landlords and viewings. Their two children continue to live in this type of temporary accommodation as they return to school at the beginning of September. The family are very despondent at this stage as they see no way out of their predicament. As schools return after the summer holiday period John and Mary do not know from week to week where they will be sending their children to school from. (*Not their real names) 2

3 Domestic violence COPE Galway Waterside House provides Refuge accommodation and Outreach support to women and their children experiencing Domestic Violence. Supports include one to one information and safety planning, 24hr telephone support, parenting advice, direct support for children from qualified childcare workers, referral to play therapy for children and adult counselling for women, advocacy with regard to entitlements such as Housing, Social Welfare and Immigration status, Court preparation and accompaniment and Outreach support in Galway City and County. In addition, the service provides Training and Awareness on Domestic Violence to a range of statutory and voluntary agencies and carries out preventative and education work with students at both second and third level. Europe s largest ever survey on Violence against Women carried out by the European Union Agency for Fundamental Rights in 2012 reveals that violence against women is pervasive and extensive across the 28 EU states including Ireland. The survey shows that 26% of Irish women or 394,325 women have experienced physical and/or sexual violence by a partner or non-partner since the age of 15. SAFE Ireland, the national representative body for Domestic Violence Refuges and Support Services across Ireland report that on one day alone, the 5th November 2014 a snapshot Census taken over a 24 hour period shows that 467 women and 229 children were accommodated in, or supported by, a domestic violence service. Women s Aid reported 16,464 disclosures of Domestic Violence against women in 2014 and recorded over 150,000 visits to their website. At a local level in Galway in 2014, COPE Galway Waterside House Refuge and Outreach service supported over 600 women and children experiencing domestic violence, and carried out 162 Court accompaniments. The 24hr Helpline received a total of 1,176 calls from or on behalf of women seeking support and information. Homelessness and Domestic Violence - A significant proportion of women and children accessing refuge accommodation are homeless because of domestic violence. Due to the current housing crisis many women who are ready to move on from refuge are unable to access private rented accommodation due to the overall severe shortage of housing, a lack of sufficient rental properties accepting rent supplement and of those that do, many are above the current rent supplement cap limits. This results in families staying for extended periods in refuge, which means in turn a lack of refuge spaces for women who are currently seeking safety because of domestic violence. Women and their children who are long term homeless in refuge because of domestic violence should be prioritised for Rental Accommodation Scheme tenancies and, where suitable private rented accommodation has been identified, it is vital to ensure a wider application of exemptions to existing Rent Supplement maximum rent cap limits. 3

4 Rosaleen* and her three children presented seeking refuge 14 months ago due to serve physical and emotional abuse. Rosaleen was pregnant with her fourth child. The family received a variety of supports including help with social welfare, school placements for the children, registration for social housing and health and welfare concerns of the children were addressed by relevant personnel from Tusla. Rosaleen applied for and received a three year Safety Order against her violent partner and was ready to move on from the refuge and start over with her children. Ordinarily in the past the next stage for someone in Rosaleens situation was to secure housing in the private rented sector (in most instances) and move on from the refuge. However, 14 months later, following hundreds of accommodation searches, enquiries and viewings of properties Rosaleen has been unable to secure private rented accommodation. Her fourth child was born while Rosaleen was in the refuge and has spent the first eight months of his life there. Rosaleen continues to search for accommodation but has become depressed due to her homelessness despite all her efforts. (*Not her real name and certain details have been withheld to safeguard her identity) In 2014, COPE Galway Waterside House Domestic Violence refuge was unable to accommodate 227 women and 280 children who were seeking safety from domestic violence due not having space when they presented. That figure continues to increase this year. Older People COPE Galway s older people s services supports older people to continue living independently at home through the provision of a range of supports in the community including Meals-on-Wheels, lunch clubs, a Day Centre and Community Support Project, all of which provide practical supports which help ensure older people can continue to live in their own homes in the community. In 2014 COPE Galway produced and delivered over 50,000 meals to 326 older people through our Meals-on-Wheels service and catered for up to 100 people weekly across seven Lunch Clubs in Galway City. Our Day Centre supported 55 people over the course of the year. Older people experience ongoing challenges in relation to living independently at home (public policy and the National Positive Ageing Strategy promotes this) due to changes in their health status, availability of support, hospital waiting lists and poor economic circumstances. The cumulative impact of budgetary changes and a failure to acknowledge the real cost of living alone continues to put older people at risk of isolation, often resulting in them feeling unsafe, challenging their ability to keep healthy and well. Both the National Positive Ageing and Healthy Ireland strategies highlight the importance of supporting older people to remain living at home independently as ageing in their own home is recognised as the preferred option in terms of choice and positive health outcomes. 4

5 COPE Galway Proposals for Budget 2016 Housing An injection of new capital to fund the building of social housing by the state immediately to address the growing number of people becoming homeless and to provide for single person households in need of one bedroom accommodation Additional funding to be made available through the Capital Assistance Scheme (CAS) for the delivering of social housing for homeless so the 2016 target of eliminating long-term homeless can be achieved. The Department of Finance, Department of the Environment, Community and Local Government and Department of Social Protection should financially incentivise landlords of private rental housing to accept tenants under the Housing Assistance (HAP), Rental Accommodation (RAS) and Rent Supplement (RS) schemes. Tax incentives should be considered for landlords with tenants in receipt of RS, RAS and HAP such as increasing tax relief to landlords to 100%, similar to the tax treatment of commercial landlords to encourage potential landlords to invest in homes for people rather than commercial property whilst we are in the middle of a housing crisis. This increased tax relief should only be available to landlords who accept RS, HAP and RAS tenants for a minimum of 5 years Introduce and extend the 12.5% rate of corporate tax for multi-unit rental companies which will incentivise larger corporate businesses to enter the Irish market in a serious way. Change legislation regarding maximum leases from current maximum leases of 4 years and 9 months to years in line with European levels and to reflect the growth in the number of long term leasers. Introduce measures to ensure that Rent Supplement and Housing Assistance Payment maximum cap limits are in line with the private rental market so that people on Rent Supplement or HAP have a realistic chance of securing housing in the private rental market. Rent supplement levels should also be reviewed on a six monthly basis The Housing Authority in operating HAP should be allowed to use its discretion to provide for increases above the maximum limits aligned to Rent Supplement limits in exceptional situations where an individual is at imminent risk of homelessness or where the person is moving on from homelessness. Rent certainty measures to be introduced to link rent increases to the consumer price index and to have these increases explicit within a tenancy agreement so that tenants know what increases to expect and when to expect them for the duration of the lease Legislation to be introduced to protect sitting tenants in properties which are the subject of court mandated sales following repossessions by financial institutions Rent Supplement maximum limits to be increased on an area basis to reflect market rent levels in the area. Ensure that the rent supplement scheme can facilitate people who are at imminent risk of homelessness or who are already homeless and in emergency accommodation to more easily 5

6 secure rent supplement at a level that allows them to compete in the current rental housing market Introduce a pre-approval mechanism for Rent Supplement claimants who have been assessed by the relevant local authority as having a housing need Ensure that Rent Supplement is paid in advance, rather than in arrears. The payment of the supplement in arrears puts people who are reliant on rent supplement and are seeking housing at a distinct disadvantage when it comes to securing a property. The payment of RS in advance would ensure that landlords would be more open to accepting RS tenants on the same basis as other tenants in the mainstream rental market. Reform of the documentation requirements on recipients and landlords to make the application process for rent supplement less bureaucratic Have a greater deal of flexibility in regards to parents with part-time access in order for them to secure accommodation with extra space to allow for their children to be able to stay the night. Sufficient money should be made available through the Housing Adaption Grant scheme to cover adaptation costs for older people and the qualifying age should be brought back to 60. Social Protection Increase basic social welfare to a week 1. All payments to be at the standard rate regardless of age 2. Ensure that future budgets benchmark social welfare rates at a level that is sufficient to both lift people above the poverty line and provide them with a minimum essential standard of living 3. Increase the contributory and non-contributory state pensions by 5 per week. Change the criteria for Casual/Part time Jobseekers payments to one based on hours worked rather than days 4. Reverse the cuts of 2011 made to the Household Benefits Package. Reinstate the phone allowance in the Household Benefits Package to 2011 levels of Reinstate Fuel Allowance to 32 weeks 6 Increase the maximum weekly income qualification for Fuel Allowance. Eligibility for Fuel Allowance should be based on a person s means and income rather than length of time on social welfare and having a qualifying payment as people on low incomes can still experience fuel poverty 7. 1 As recommended by EAPN 2 As recommended by EAPN 3 As suggested by EAPN-Ireland, Submission to Budget As suggested by EAPN-Ireland, Submission to Budget As suggested by 6 As suggested by 7 Paraphrased from Submission-2016-Investing-in-What-Matte.aspx 6

7 A lump sum Fuel Allowance payment option should be available to people who have oil fired central heating which has to be bulk purchased The issue of poorly insulated homes should be addressed and local authority insulation programmes should be rolled out with priority given to the homes of older people to address fuel poverty. Increase Living Alone Allowance to 10 per week Increase Child Benefit in Budget 2016 by 5 per month. Increase the amount payable for a Qualified Child (for those aged 13-18) from to Increase the supply of affordable, quality childcare for lone parents seeking to prepare for or engage with education and/or the workforce Increase One Parent Family Payment from Increase the weekly income disregards for the means test for One Parent Family Payment by 5%. Provide free access to part-time education options for recipients of Job Seekers Transition Allowance 8. The minimum amount of hours needed to be eligible for Family Income Supplement should be reduced to 15 per week 9 Restore the Back to School Clothing and Footwear Allowance to the 2010 level. Increase income limits eligibility for both lone parents and two parent families to Back to School Clothing and Footwear Allowance Health Any person registered as homeless to qualify for a medical card on the basis of having no fixed abode if necessary Abolish prescription charges for medical card holders. Childcare Increase the supply of affordable, quality public childcare. Access to Legal Aid Review the requirement for women experiencing domestic violence to pay the full fee for Legal Aid representation when they wish to access legal protection. 8 Suggested by 9 As suggested by One Family and Childrens Rights Alliance 7

8 Resourcing of services to the public Begin to address the deficit in public services and publicly funded services which is the result of spending reductions over the past seven years and commit to increase funding for services so that they are in a position to address need. Increase funding levels to services for people who are homeless in response the growth in the numbers of households becoming homeless and at risk of homelessness Background and context to COPE Galway Budget Proposals Housing Social Housing Delivering on the implementation of the Social Housing 2020 will undoubtedly be the main focus in Budget 2016 for the provision of additional social housing. The delivery targets in this social housing strategy to be achieved by the end of 2020 include providing 35,000 social housing units through new build, leasing, ownership transfer, re-letting local authority voids; and supporting up to 75,000 households on local authority waiting lists living in the private rented sector through a new Housing Assistance Payment (HAP) and the existing Rental Accommodation Scheme (RAS). Social Housing 2020 is overly-reliant on private landlords to supply housing through the RAS and the HAP and the targets do not represent new housing supply. The private rented sector does not have enough landlords of sufficient scale to adequately deliver the units in a timely way. Since the announcement of this Housing Strategy in November 2014 this shortage of private rented housing has in fact become even more acute in Galway. This in turn is contributing to a situation where there are growing numbers of people becoming homeless and remaining so for extended periods of time as rents continue to rise. This situation in the view of COPE Galway necessitates a rethink on how the strategy will be implemented and requires an injection of new capital in Budget 2016 to fund the building of social housing by the state in the short term. In addition in order to deliver these units a coordinated and cross departmental approach is needed at government level to speed up the planning and construction of this new social housing. Approved Housing Bodies (AHB) have a proven track record at developing and acquiring new social housing and should be supported to act quickly when opportunities arise. Mechanisms to improve access to finance for AHB s including a review of how the Capital Advanced Leasing Scheme (CALF) is operating so as to make it more financially viable should be undertaken. Additional funding is required to be made available through the Capital Assistance Scheme (CAS) for the delivering of housing for homeless so the 2016 target of eliminating long-term homeless can be achieved. There is a need for multiple sized social housing units including most especially one bedroom units for single person households who are homeless and who make up the majority of people using homeless services and sleeping rough. 8

9 Funding reductions experienced by local housing authorities over the past number of years has negatively impacted on their ability to respond to the current housing crisis including bringing voids back into use in a timely manner. Homeless services in the voluntary sector also require additional resources in the short term in order to be able to respond to growing homelessness crisis with these resources made available across the regions including the West region. An injection of new capital to fund the building of social housing by the state immediately to address the growing number of people becoming homeless and to provide for single person households in need of one bedroom accommodation Additional funding to be made available through the Capital Assistance Scheme (CAS) for the delivering of housing for homeless so the 2016 target of eliminating long-term homeless can be achieved. Private rental housing The current homelessness crisis has been to a large extent caused by the contraction of the private rented sector. For over 10 years the private rented sector provided a solution to housing need for many Irish households. However the last 2 years has seen a rapid decline in access to this type of housing for households reliant on rent supplement. The decision by government in the emergency budget of 2009 to limit tax relief that landlords could set against rental income to 75% of interest resulted in many landlords (both professional and private) selling their properties. A similar contraction is being caused where lending institutions are repossessing buy to let properties. These institutions are serving notice to sitting tenants as they do not want to become landlords of these properties. The government need to attract private investors back into the private rented sector to ensure that there is sufficient supply of social housing through the private rented market. Social Housing 2020 is reliant on the private rented sector to produce 32,000 units to be available under the Rental Accommodation Scheme (RAS) and the Housing Assistance Payment scheme (HAP) by 2017 and a further 43,000 units by 2020 nationally. With the roll out of HAP scheduled to commence in Galway in September 2015 it is critical in the view of COPE Galway that measures are introduced in Budget 2016 to incentivise private landlords to participate in state funded schemes such as HPA, RAS and Rent Supplement. Over the past number of months there has been a steady stream of landlords withdrawing from the RAS scheme in Galway City and with rents continuing to increase in the private rental sector more broadly there is concern that the scheme will struggle to retain existing landlords and recruit new ones. Households reliant on rent supplement are also experiencing significant difficulties in securing private housing in Galway City due to the buoyant market and the maximum rent supplement cap limits being too low to allow these households to compete for properties available for rent. This combined with what appears to be an ever shrinking pool of private rented properties available has contributed to the unprecedented situation for Galway City where families are being accommodated in B&B and Hotel accommodation for extended periods of weeks and months due to they being homeless. The limits for HAP payments are also based on the current Rent Supplement limits which do not 9

10 meet market rents and are unrealistic. This needs to be addressed if low income households are to feel the full benefit of this scheme. The Department of Finance, Department of the Environment, Community and Local Government and Department of Social Protection should financially incentivise landlords of private rental housing to accept tenants under the Housing Assistance (HAP), Rental Accommodation (RAS) and Rent Supplement (RS) schemes. Tax incentives should be considered for landlords with tenants in receipt of RS, RAS and HAP such as increasing tax relief to landlords to 100%, similar to the tax treatment of commercial landlords to encourage potential landlords to invest in homes for people rather than commercial property whilst we are in the middle of a housing crisis. This increased tax relief should only be available to landlords who accept RS, HAP and RAS tenants for a minimum of 5 years Introduce and extend the 12.5% rate of corporate tax for multi-unit rental companies which will incentivise larger corporate businesses to enter the Irish market in a serious way. Change legislation regarding maximum leases from current maximum leases of 4 years and 9 months to years in line with European levels and to reflect the growth in the number of long term leasers. Introduce measures to ensure that Rent Supplement and Housing Assistance maximum cap limits are in line with the private rental market so that people on rent supplement/hap have a realistic chance of securing housing in the private rental market. Rent supplement levels should also be reviewed on a six monthly basis The Housing Authority in operating HAP should be allowed to use its discretion to provide for increases above the maximum limits aligned to Rent Supplement limits in exceptional situations where an individual is at imminent risk of homelessness or where the person is moving on from homelessness. 10

11 Rent certainty Government plans to make landlords sign up to three year rent certainty deals linked to inflation to prevent unreasonable price hikes for tenants which were promised earlier this year are still awaited. Such measures are now more vital than ever to prevent a further escalation of the growing numbers becoming homeless. COPE Galway supports proposals contained in May 2015 report by the National Economic and Social Council (NESC) 10 that cover the areas of rent certainty, secure occupancy, tax treatment and others. Rent certainty measures to be introduced to link rent increases to the consumer price index and to have these increases explicit within a tenancy agreement so that tenants know what increases to expect and when to expect them for the duration of the lease Distressed property phenomenon Families and individuals becoming homeless following the issuing of notice to quit because their homes have been taken over by receivers due to the distressed property phenomenon affecting a proportion of the 33,000 buy-to-let residential properties nationally (according to the Irish Central Bank) has contributed to a growth in homelessness in Galway over the past number of months. This short sighted approach which is resulting in hardship for those who become homeless as a consequence of it and the loss of rental income for receivers and subsequently for purchasers is one that should in the view of COPE Galway be addressed in Budget Legislation to be introduced to protect sitting tenants in properties which are the subject of court mandated sales following repossessions by financial institutions Rent Supplement Rent Supplement is paid to those who live in private rented accommodation but cannot provide for the cost of their accommodation from their own resources. Usually, a person will qualify for rent supplement, if his or her only income is from a social welfare payment and he or she satisfies other conditions such as: living for 6 months out of the last 12 in homeless accommodation, private rented accommodation, an institution such as a hospital, care home or place of detention, or a combination of these. A person may also qualify for rent supplement if his or her income is from a social welfare payment and they have been assessed by their local authority as being 10 National Economic and Social Council - Ireland s Rental Sector: Pathways to Secure Occupancy and Affordable Supply; No. 141 May

12 eligible for and in need of social housing in the last 12 months 11. However as Threshold highlights, reviews of Rent Supplement limits have taken place roughly every 18 months. With the most recent being in February 2015 which was the fourth since rental prices reached their peak in Since the previous review in June 2013, asking rental values have increased nationally by 14.7% 12. The most recent Daft.ie Rental Report for Q reported a 10.1% annual increase in average rents for Galway City and stated that rents are now higher than at any point in the peak period 2006 to 2008 for the city. According to Daft.ie, the average monthly rent in Galway city for a 1-bed is 581, a 2-bed 650, a 3-bed is 812, a 4-bed 879 and for a 5-bed it is As the table below illustrates 14 the rent cap for Galway is much lower than what is available on the market. Single Couple with no children Couple with 1 child or one parent family with 1 child Couple with 2 children or one parent with 2 children Couple with 3 children or one parent with 3 children Rent Supplement limit On August 18th 2015, the day of publication of this report by Daft.ie there were just two 3 bedroom properties available at less than average figure of 812 per month detailed in the report with asking rents of 800 per month with the next cheapest property standing at 850. This means that many families and people on rent supplement take accommodation which is above the rent cap and top up their rent by using their social welfare payment. This decreases their income, leaving them less money for other necessities, forcing households into debt, and adding more financial burdens to an already difficult situation. This inadequacy has been noted by the United Nations Committee on Economic, Social and Cultural Rights who have highlighted the growing number of families and children that are, or at the risk of being, homeless, as a result of the lack of social housing and the inadequate levels of rent supplement 15 As Barnardos points out Families experiences of overcrowding, substandard housing conditions, insecure tenancy and homelessness are becoming more common. This is due to the dearth of social housing stock, landlords reluctance to accept rent supplement tenants or charging rents that far exceed the amount of rent supplement received and the inappropriateness of emergency 11 nt_supplement.html 12 Paraphrased from june _2015.pdf 13 The Daft.ie Rental Report An analysis of recent trends in the Irish rental market for 2015 Q United Nations Committee on Economic, Social and Cultural Rights, Concluding observations on the third periodic report of Ireland, (E/C.12/IRL/CO/3), June 2015, p

13 accommodation facilities for families 16. During a 24 hour period between June 2 nd and 3 rd 2015 COPE Galway was working with 148 households in total who were either homeless or at risk of homelessness, including 157 adults and 94 children. There were 64 households in emergency accommodation of which 19 were families with 37 children being accommodated as part of these families. 17 Nine of these families were accommodated in hotels or B&B s. The effects on a child s social, emotional, and educational development due to not living in a family home are far reaching. It can cause conflict and strain relationships, while living in overcrowded conditions means little or no personal space to do homework or play etc 18. The rent supplement criteria can be difficult for families that are separated. These families, which have custody arrangements or joint access can face problems with how rent supplement is administered. Usually rent supplement for the appropriate family size is given to one parent while the other parent gets a payment for a single household. The rent supplement limit for a single person means the accommodation obtained is unsuitable for family living which can undermine family relationships and access arrangements 19. It is the experience of COPE Galway that increasing rent levels in Galway City have contributed to growth in the numbers of households becoming homeless and living in emergency accommodation for extended periods of time 20. This is contributing to a situation where an increasing number of people are falling into the category of long term homeless due to them remaining in emergency homeless accommodation in excess of six months and is impacting on the ability of emergency accommodation services such as those operated by COPE Galway to respond to new presenting need. This in turn is resulting in an increasing reliance on B&B and other tourist accommodation to meet emergency accommodation need, very often at considerable cost to the public purse. For those who are fortunate enough to identify an affordable property for rent it is the experience of COPE Galway that there are other obstacles to be overcome before these individuals and families can secure this housing; they are generally not in a position to provide landlords with an assurance of their ability to pay the rent due to how the rent supplement system is currently administered with confirmation of eligibility and approval of the granting of rent supplement only available after suitable housing has been identified. The introduction of a pre-approval mechanism for claimants who have been assessed by the relevant local authority as having a housing need would overcome this barrier. The main criterion for eligibility for Rent Supplement is that the applicant has been assessed as having a housing need by the relevant housing authority. This combined with the fact that maximum rent supplement limits are fixed based on household size and geographical area means that there should be no reason why preapproval in principle could not be granted before searching for accommodation. This would increase the confidence of landlords who are approached by prospective tenants who are reliant on Rent Supplement Paraphrased from 19 Paraphrased from june _2015.pdf 20 COPE Galway Annual Report 2014 August

14 Further changes to how the scheme is administered include moving from payment of a week in arrears to payment in advance and a reform of the documentation requirements including making provision for direct submission of confidential documents by landlords to rent officers in the Department of Social Protection. The amount of documentation required of landlords is a disincentive to accepting tenants on rent supplement and should be reformed to reduce the overly onerous level of bureaucracy involved. John* is in his fifties has been living in homeless accommodation for more than six months. The following is a summary of his experience in trying to secure private rented accommodation from the four month period since April 20 th 2015; 64 one bedroom/bedsit type accommodations were reviewed. 55 of the 64 properties exceeded the rent cap limits. Only 9 of the properties were under the rent cap limits. Of these 9 when contacted 3 of the properties were gone, 4 of the properties stated no rent allowance, 1 stated professionals only and 1 stated landlord references required. No viewings were secured. (*Not his real name) Rent Supplement maximum limits to be increased on an area basis to reflect market rent levels in the area. Ensure that the rent supplement scheme can facilitate people who are at imminent risk of homelessness or who are already homeless and in emergency accommodation to more easily secure rent supplement at a level that allows them to compete in the current rental housing market Introduce a pre-approval mechanism for Rent Supplement claimants who have been assessed by the relevant local authority as having a housing need; Ensure that Rent Supplement is paid in advance, rather than in arrears. The payment of the supplement in arrears puts people who are reliant on rent supplement and are seeking housing at a distinct disadvantage when it comes to securing a property. The payment of RS in advance would ensure that landlords would be more open to accepting RS tenants on the same basis as other tenants in the mainstream rental market. Reform of the documentation requirements on recipients and landlords to make the process less bureaucratic Have a greater deal of flexibility in regards to parents with part-time access in order for them to secure accommodation with extra space to allow for their children to be able to stay the night Paraphrased and suggested by june _2015.pdf 14

15 Housing Adaptation Grant As an individual s mobility declines with age or following a period of illness or accident the home environment may need to be adapted. Small investment into the home enables the person to remain living at home independently and reduces need for nursing home care (e.g. putting in a shower or stair lift). In the 2014 budget the qualifying age was increased to 66 (from 60) and reductions were made to the grants available. The maximum grant available was reduced to 8,000 from 10,500 and the percentages of approved costs covered by the grant have been adjusted on a sliding scale. The maximum is now 95% reduced from 100%. Changes to funding for nursing home beds in 2014 has put community based services under more pressure. Again it is the most vulnerable who are most negatively impacted as they struggle to remain living at home safely with a quality of life. Sufficient money should be made available through the Housing Adaption Grant scheme to cover adaptation costs for older people and the qualifying age should be brought back to 60. Social Protection Even though Ireland s economy is growing, poverty is still prevalent and over the last number of years there have been cuts to the income supports that many households rely on to have a minimum standard of living. The range of social protection schemes in place play a critical role in the lives of most of the individuals and families supported by COPE Galway. Changes in eligibility and rates can have a significant impact for better or worse for many so it is critical that any measures introduced in Budget 2016 contribute to the reduction of poverty. There can be no more cuts and any budget reductions should only be made after poverty impact assessments have been conducted. What is Poverty? The National Anti-Poverty Strategy defines poverty as: People are living in poverty if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living which is regarded as acceptable by Irish society generally. As a result of inadequate income and resources, people may be excluded and marginalised from participating in activities which are considered the norm for other people in society. What is deprivation? Households that are excluded and marginalised from consuming goods and services which are considered the norm for other people in society, due to an inability to afford them, are considered to be deprived. The identification of the marginalised or deprived is currently achieved on the basis of a set of eleven basic deprivation indicators: 15

16 1. Two pairs of strong shoes 2. A warm waterproof overcoat 3. Buy new (not second hand) clothes 4. Eat meal with meat, chicken, fish (or vegetarian equivalent) every second day 5. Have a roast joint or its equivalent once a week 6. Had to go without heating during the last year through lack of money 7. Keep the home adequately warm 8. Buy presents for family or friends at least once a year 9. Replace any worn out furniture 10. Have family or friends for a drink or meal once a month 11. Have a morning, afternoon or evening out in the last fortnight for entertainment Individuals who experience two or more of the eleven listed items are considered to be experiencing enforced deprivation. This is the basis for calculating the deprivation rate. 22 What is Consistent Poverty? Consistent Poverty means having an income below 60% of the median 23 and also experiencing enforced deprivation. This means being on a low income and not being able to afford basic necessities such as new clothes, not having the money to buy food such as meat or fish, not being able to heat your home, or having to go into debt to pay ordinary household bills. 24 What is being at risk of Poverty? The being at risk of poverty indicator is the share of persons with an equivalised income below a given percentage (usually 60%) of the national median income. 25. Causes There are many causes and factors that contribute to the existence of poverty such as economic resources and social resources being unevenly distributed meaning that the same opportunities are available for all people 26. As the OECD highlights there is a considerable gap between the richest and poorest the top 20% of the population earn almost five times as much as the bottom 20% 27. There are other factors that contribute to people experiencing poverty such as work, age, health, education, family and location 28. Statistic CSO figures from 2013 state the 15.2% of all people in Ireland were at risk of poverty and 17.9 of people aged between 0-17 were at risk of poverty. In the Border, Western and Midlands region national median income Paraphrased from Paraphrased from 16

17 this figure for all persons stands at 21.4% 29. In 2013 the deprivation rate in Ireland was 30.5% and the consistent poverty rate was 8.2% 30. While the figures date from 2013 and with the number of people on the live register falling both nationally and locally, as well as unemployment rates, we still have families with children living in hotels. COPE Galway continues to see an increase in people using its homeless services, with our most recent one day census showing 64 households in emergency accommodation on the night of June 2nd including 19 families consisting of 37 children 31. There has been no increase in Jobseekers Allowance since 2013 but there has been an increase in rental prices 32 as well as an increase in the minimum essential standard of living final.pdf?sfvrsn=4 17

18 Social Welfare Rates Currently Social Welfare rates are 188 a week for a person over 25, for a person aged 25 and 100 for a person aged The payment of 100 a week to people aged leaves the 49, young people who are on the live register struggling to make ends meet, with 1 in 4 unable to move out of home 35 or emigrate. An estimated 33, year olds emigrated between April 2013 and With the minimum essential standard of living set at in urban areas and in a rural area for a single person living alone, and excluding housing, childcare and the effect of secondary benefits, these payments are entirely inadequate 37. Only if a young person is coming from the care of the Child and Family Agency and qualifies for Jobseeker s Allowance will they get a full payment rather than the reduced rates that apply to those aged between 18 and 25. Young people who were not in care and who become homeless may qualify only for the reduced rates 38. As Focus Ireland highlights, young people, who are under 25 and using emergency accommodation or who are sleeping rough, simply cannot survive on the 100 per week when given the cost of emergency accommodation can be 50 to 75 per week 39. Statistics from April 2015 show that there were 516 people aged between homeless with 8 in the West 40, Increase basic social welfare to a week 41. All payments to be at the standard rate regardless of age 42. Ensure that future budgets benchmark social welfare rates at a level that is sufficient to both lift people above the poverty line and provide them with a minimum essential standard of living Figures taken from Budget_Submission_2016.pdf Paraphrased from As recommended by EAPN 42 As recommended by EAPN 43 As suggested by EAPN-Ireland, Submission to Budget

19 State Pensions Both the contributory and non- contributory state pensions have remained unchanged since 2009 while new charges have been introduced (Local Property Tax and Water charge). It has been difficult for some older people to have a good quality of life and manage on this fixed income. Increase the contributory and non-contributory state pensions by 5 per week. Casual/part time work and social welfare (working hours criteria) If a person on Jobseeker s Allowance takes up part time or casual work up to 3 days a week, he/she may still receive a payment for the other days. However if this part-time work is spread over four or five days and for the same number of hours they do not get any payment. The casual/part time social welfare system needs to be changed from number of days worked to number of hours worked 44. The working days rule in its current form can act as a disincentive to taking up part time employment 45 Change the criteria for Casual/Part time Jobseekers payments to one based on hours worked rather than days 46. Household benefits package The Household Benefits Package is a set of allowances which help with the costs of running a home. It is available to people aged over 70 and to people under 70 in certain circumstances. Only one person in a household can qualify for the package at any time per quarter is paid to support pensioners, people with disabilities and carers with paying water charges, it is paid to those who are receiving the Household Benefits Package in 2015 which will benefit 415,000 households 48. In 2011 these allowances were cut 49 and today stand at 35 monthly for the electricity allowance, the cash electricity allowance, the natural gas allowance and the cash gas allowance 50. These cuts add an extra financial burden to people already struggling especially 44 As suggested by EAPN-Ireland, Submission to Budget As suggested by EAPN-Ireland, Submission to Budget hold_benefits_package.html hold_benefits_package.html 19