Dáil Éireann Debate, Tuesday - 5 October 2021
323. Deputy Alan Dillon asked the Minister for Housing, Local Government and Heritage if he can address the reason income thresholds and rent limits have not kept pace with rising rent expenses with many households now topping up their HAP to private landlords exceeding 30% of their net income; and if he will make a statement on the matter. [48333/21]
View answerApplications for social housing support are assessed by the relevant local authority, in accordance with the eligibility and need criteria set down in section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the associated Social Housing Assessment Regulations 2011, as amended.
The 2011 Regulations prescribe maximum net income limits for each local authority, in different bands according to the area concerned, with income being defined and assessed according to a standard Household Means Policy. The 2011 Regulations do not provide local authorities with any discretion to exceed the limits that apply to their administrative areas.
Under the Household Means Policy, which applies in all local authorities, net income for social housing assessment is defined as gross household income less income tax, PRSI, Universal Social Charge and Additional Superannuation Contribution. The Policy provides for a range of income disregards, and local authorities also have discretion to decide to disregard income that is temporary, short-term or once-off in nature.
The income bands are expressed in terms of a maximum net income threshold for a single-person household, with an allowance of 5% for each additional adult household member, subject to a maximum allowance under this category of 10% and separately a 2.5% allowance for each child.
The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs, plus a comparative analysis of the local rental cost of housing accommodation across the country. It is important to note that the limits introduced in 2011 also reflected a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn, both promoting sustainable communities and also providing a degree of future-proofing.
Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support. The current income eligibility requirements generally achieve this, providing for a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs from their own resources.
However, as part of the broader social housing reform agenda, a review of income eligibility for social housing supports in each local authority area is underway. As set out in Housing for All, the efficiency of the banding model and its application to local authorities will be considered. Equivalisation as between singles and families will also be considered. The review will also have regard to new initiatives being brought forward in terms of affordability and Cost Rental housing and will be completed when the impacts of these parallel initiatives have been considered.
Increased rent limits for the Housing Assistance Programme (HAP) and the Rent Supplement Scheme were introduced in 2016. These limits were agreed in conjunction with the Department of Social Protection (DSP). In reviewing the rent limits, my Department worked closely with DSP and monitored data gathered from the Residential Tenancies Board and the HAP Shared Services Centre. The HAP rent limits were increased significantly, in the order of 60% in some cases.
Maximum rent limits for the HAP scheme are set out for each housing authority area by the Housing Assistance Payment (Amendment) Regulations 2017. The current maximum HAP rent limits are available on the Irish Statute Book website at the following link: irishstatutebook.ie/eli/2017/si/56/made/en/print?q=housing&years=2017 .
Local authorities also have discretion, because of local rental market conditions, to exceed the maximum rent limit by up to 20%, or up to 50% in the Dublin region for those households either in, or at immediate risk of homelessness. It should be noted that it is a matter for the local authority to determine whether the application of the flexibility is warranted on a case by case basis and also the level of additional discretion applied in each case.
In considering this issue, I am conscious that increasing the current HAP rent limits could have negative inflationary impacts, leading to a detrimental impact on the wider rental market, including for those households who are not receiving HAP support.
My Department is aware that some HAP recipients are making payments directly to their landlords, beyond the amount of HAP being paid on their behalf. There is no legislative provision precluding HAP supported households contributing towards the monthly rent to their landlord beyond that of their HAP payment. However, decisions in relation to HAP, including the suitability of HAP accommodation, is solely a matter for the local authority concerned and local authorities have a responsibility to ensure that tenancies are sustainable and are advised not to provide HAP support to tenancies where the household would not be in a position to meet the rental costs being sought.
My Department continues to keep the operation of the HAP scheme under review and closely monitors the level of discretion being used by local authorities, taking into account other sources of data, including Residential Tenancies Board rent data published on a quarterly basis.
The Programme for Government commits to ensuring that HAP levels are adequate to support vulnerable households, while we increase the supply of social housing. Under Housing for All, my Department will undertake an analytical exercise to examine whether an increase in the level of discretion available to Local Authorities under HAP is required, in order to maintain adequate levels of HAP support.
