Some people in Barbados with properties up for rental are refusing to provide lodging for individuals on welfare because of Government’s failure to pay rent on time and because some of them simply did not want to register with the Barbados Revenue Authority (BRA) and pay taxes.
On Friday, former housing minister, Member of Parliament for Christ Church West Dr William Duguid raised the issue, noting that he was also concerned that property owners were shying away from renting to individuals receiving government assistance because of the maximum amount Government was willing to pay.
Under the current rent assistance programme, Government provides up to $800.
“I have a great concern about this,” said Duguid.
He said he was aware that “many times” people who visit the Welfare Department for rent assistance were unable to find “an amenable landlord that will accept the welfare payment”.
“Part of this is because all of the landlords out there I am told, know full well that they will get paid but the Welfare Department takes a long time to pay them. In some instances some people complain that it takes three months [or] four months to get that Welfare cheque, and I am told they don’t pay first and last month’s rent. That is another aspect of it we have to work on and then the quantum that the Welfare is prepared to pay.
“That $800 was set many years ago but unfortunately the average rent for a two-bedroom, one-bathroom apartment let’s say, is in the $1,000 range,” he said.
Duguid was speaking in Parliament on Friday during the Appropriation Bill 2022, specifically on the heading for the Ministry of People Empowerment and Elder Affairs, which is budgeted at $76,853,931 for the 2022/2023 financial year.
Minister of People Empowerment and Elder Affairs Kirk Humphrey acknowledged that the matter of housing for people receiving rent assistance was one of interest, while agreeing that the $800 assistance was “not necessarily the highest”.
He said he was also concerned that some landlords simply did not want to “deal with” people who were getting government assistance and some did not want to rent to families with children.
Humphrey said such issues highlighted the need for urgent rebranding and upgrading of Government’s welfare services. He indicated his intention to take a paper before Cabinet to get the $800 increased.
“There is also an underground economy in Barbados that has allowed Barbadians to live for years – this idea that we could go to somebody else’s house and you pay a little rent. Now, because of the way the mature, modern Barbados must function, and I am not blaming the current system, but now you must have a TAMIS number.
“You must be able to prove that you are legally the landlord. So you must be able to have some papers and often times, people do not have the papers and they do not wish to have a TAMIS number. So a lot of the houses that would have been available in the underground economy, are no longer available in the more legitimate structure of things,” Humphrey explained.
The Tax Administration and Management System (TAMIS) is an online tax system set up in 2018 for individuals and firms to use to file and pay taxes.
In relation to late payment, Humphrey said he has already had initial conversations about “speeding up” payments.
“We have forwarded the idea of advanced payments. It is something I hope we can have further ventilation on,” he said.
He also pointed out, “Sometimes decisions are made outside of the Welfare Department or the ministry and then the ministry finds itself in a position where it is playing catch up, to be able to pay these rents and we were not aware that some of these deals were struck.
“It is not only a private sector problem. It would be nice if there were two or three houses available at the NHC (National Housing Corporation). The NHC has also been unable to assist with providing two or three units for persons. So it is a private sector and public sector challenge for us,” said Humphrey.
Permanent Secretary in the Ministry of People Empowerment and Elder Affairs Gabrielle Springer gave the assurance that the issue of housing for individuals benefiting from welfare assistance was being addressed. According to her, a programme was being piloted through the assistance being offered to Hurricane Elsa victims, which should be able to be replicated.
Meanwhile, Chief Welfare Officer Deborah Norville explained the process, pointing out that after an application for rental assistance is received, the department carries out certain due diligence and then payment is then negotiated. If the client is able to pay part of the rent that was encouraged.
She said applications going to the Welfare Department for the rent assistance showed that most of the rent ranged from $1,000 to $1,400.
She too, acknowledged that some landlords were reluctant to rent because they were requesting a deposit, something the Welfare Department did not do.
Norville said the late payment by government was due to several reasons including late claims that would come in after the cut off time for claims to be processed, as well as a back-up of claims.
marlonmadden@barbadostoday.bb
