Local authorities set and collect rents on their dwellings in accordance with section 58 of the Housing Act 1966. The making or amending of such rent schemes is generally a matter for local authorities within broad principles set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay.
Local discretion and flexibility are inherent in the devolved administration of rent schemes and different approaches are taken to rent setting across local authorities. Accordingly, decisions regarding the sources of income included and disregarded for rent assessment purposes, including the Carer's Allowance, are a matter for individual local authorities. My Department has no role in this regard.
The Housing for All Action Plan Update, published in November 2022, commits to developing proposals for a standardised national rents scheme that provides the best blend of equity, progressivity and sustainability, and protects those households on the lowest incomes. Proposals will be submitted for my consideration in the autumn.