Dáil Éireann Debate, Thursday - 11 April 2024
17. Deputy Darren O'Rourke asked the Minister for Housing, Local Government and Heritage when he expects the review into the differential rent scheme for local authority housing support will conclude; and if he will make a statement on the matter. [15685/24]
View answerLocal 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 high level broad principles set out by the Department, including that rent levels should be based on income and reflect tenants’ ability to pay. This system is known as the ‘differential rents’ system.
It is a critical piece of State’s welfare apparatus, subsidising housing costs and supporting households who can’t meet their long-term accommodation needs from their own resources. Local discretion and flexibility are inherent in the devolved administration of rent schemes and different approaches are taken to rent setting across local authorities.
The system currently comprises 32 income-based schemes which differ across local authorities, with amounts charged and approaches to calculating rent varying considerably. The Programme for Government and Housing for All have committed to developing proposals for a standardised, national local authority social housing rent model. The objective is to develop and implement a model that provides the best blend between fairness, progressivity and sustainability.
My Department has completed an initial scoping exercise to determine the focus of the review, with an emphasis on achieving the best blend of equity, progressivity and sustainability and on protecting those on lowest incomes. This is a complex area and requires detailed and careful analysis. My view is that further work is required to consider the practical application of such a scheme in the context of other reform package measures, as well as the broader circumstances of social housing funding programmes and the cost of living issues at this time.
Proposals will be submitted for my consideration in due course and a decision to implement a standardised national rents scheme will be considered thereafter, as appropriate.
