Dáil Éireann Debate, Wednesday - 26 January 2022
72. Deputy Aodhán Ó Ríordáin asked the Minister for Housing, Local Government and Heritage the number of households that have had HAP payments ceased due to arrears in 2020 and to date in 2022, by local authority; the average length of time the households were in arrears before payment was ceased; and the average rental arrears owed by households at the time HAP payments ceased. [3759/22]
View answerTenants in the Housing Assistance Payment (HAP) scheme are required to sign a rent contribution agreement to pay a weekly rental contribution to the relevant local authority, in line with the local authority’s differential rent scheme. As set out in the rent contribution agreement, this weekly rental contribution must be paid by them so that they remain eligible for the HAP scheme. HAP recipients are required to set up automatic electronic rent payment arrangements.
The HAP Shared Services Centre (SSC) manages the collection of all HAP tenants’ differential rents, on behalf of the relevant local authority, and the payment of all HAP rents to landlords on behalf of tenants supported by the HAP scheme. The HAP SSC follows a clear communication policy if rental arrears issues arise. This policy includes regular and early written communication with tenants, landlords and the relevant local authority.
The approach taken by the HAP SSC has been very effective with minimal levels of rent arrears arising for HAP tenants. In 2019, the scheme had a 96% differential rent collection rate, with minimal arrears arising for tenants or local authorities. At Q3 2021, the scheme had a 98% differential rent collection rate. Therefore, only a very small number of tenants have fallen into difficulty with their differential rent.
During the Covid-19 emergency, the HAP Debt Management Process (DMP) was suspended from March 2020 and partially re-commenced in October 2020. This meant non-payment of differential rent by a tenant during that time did not affect payments to HAP landlords. Tenants were, however, expected to continue to pay their rent with supports available for those financially impacted by Covid measures in place.
The payment of HAP in respect of tenancies that had already entered the cessation stage of the DMP prior to the suspension of the process in March 2020 remained suspended, and local authorities were advised to proceed in ceasing those tenancies. In 2020, 18 tenancies have had their HAP support ceased for non-payment of differential rent, after the debt management process was fully completed.
Following on from the successful roll out of the COVID vaccine programme and the reopening of society it was agreed to re-instate the full DMP, from September 2021. From 6 September 2021, the debt management process as applied pre COVID was applicable to tenants entering into arrears from that date. For tenants in arrears prior to that date, these tenants were given additional time to engage with the HAP SSC Debt Management Unit to assist them in remaining in the HAP scheme and preventing the suspension/cessation of their landlord’s HAP payment. In 2021, 42 tenancies had their HAP support ceased for non-payment of differential rent, after the debt management process was fully completed. Information on cessations is collated on a quarterly basis, therefore, 2022 data is not yet available.
In relation to the average time in, and amount of, arrears outstanding at the time of cessation, the SSC advise that this information is not readily available from their "live" operating system. Information is only recorded on the current balance, which could have changed since the tenancy was ceased, if a write-off of the amount outstanding had been approved or if the tenant began to pay off the arrears.
HAP tenants in arrears should contact their local authority and the HAP SSC to discuss the options that are available to them to ensure the continuation of their HAP support.
