asked the Minister for the Environment if he will outline the changes made in the national differential rents scheme, the categories of payments now included for assessment purposes by the rent authority and the additional categories of payment, including bonus, overtime and shift allowance not previously included.
Ceisteanna—Questions. Oral Answers. - Differential Rents Scheme.
15.
Following meetings during recent months between officials of the Departments of the Environment and Finance with officials representing local authorities, and with members of the National Executive of the National Association of Tenants' Organisations in regard to the terms of a draft national rents scheme for local authority rented dwellings in 1980, prepared by my Department, I met representatives of that association on Tuesday, 25 March and informed them of the amendments which I was prepared to make in the draft scheme as a result of their representations. The following is a summary of the new scheme:
The income to be assessed for differential rent will be the income from all sources, including social welfare payments but excluding income tax and social welfare contributions, overtime payments, bonus payments, special allowances for shift working, children's allowances, disabled persons allowances, supplementary welfare allowances.
Differential rent will be assessed at a fraction, varying from one-twentieth to one-seventh, of the assessable income. In order to offset the effects of rent increases which would arise from the assessment in full, of incomes, particularly in the lower income groups, I have made substantial increases in the present assessable incomes to which the rent fractions apply. For example, the lowest fraction of income hitherto assessed for rent purposes was one-twelfth of incomes up to £19 a week. Under the 1980 scheme, income of up to £36 a week will be assessed at only one-twentieth and the upper limit of one-seventh rent fraction will apply only where the assessable income exceeds £55, as against £39 a week in the 1979 scheme.
A revised method of fixing maximum rents of new and existing dwellings is being introduced which will result in a more equitable spread of maximum rents over all rented dwellings, new and old. Increases in rent resulting from this procedure will, in 1980, be limited to £1.50 a week in any case. This increase will, of course, apply only in cases in which income warrants such an addition.
Fixed rents of local authority houses—generally those let prior to 1960—will be increased by 30p a week. It is open to any tenant on a fixed rent to opt instead to be placed on a defferential rent.
Subsidiary earners in a differential rented house will continue to contribute one-seventh of any income over £14 a week, up to a maximum contribution of £1.50 a week for any such earner.
The minimum differential rent payable in any case will be 15p a week as against 10p a week in 1979. The new scheme will come into operation at the beginning of May 1980.
The Exchequer subsidy to meet loan charges on the provision of local authority rented houses will, this year, be £62 million, an increase of some £8.5 million over last year. Local authorities are responsible for the costs of administration, maintenance, repair and insurance of their housing estates and to meet these costs are dependent on rental income and a proportion of the proceeds of sales and must meet the balance from their own resources including income from rates. The new scheme is designed to ensure that tenants who can afford to do so will pay their fair share of rent. I am satisfied that the scheme will go some way towards meeting the present substantial imbalance as between expenditure on the maintenance and management of the houses and receipts from rent. Furthermore, I consider that it is fair and equitable to all categories of tenants and that no tenant will be required to pay a rent which he cannot reasonably afford.
As in previous years, housing authorities have been requested to seek certificates of income from tenants in preparation for the implementation of the revised scheme. Such income is, in general, the weekly rate of remuneration, exclusive of shift allowances, bonus payments and overtime. No change has been made from previous years in the categories of income assessed for rent purposes.
I am grateful for that substantial amount of information but can the Minister indicate whether there has been any response from the executive of NATO to the changes outlined by him in detail and, if so, if it has been favourable?
I have not heard of any response so far and I do not know whether any response in this regard has arrived recently in the Department. However, the organisation were planning to have a delegate conference but I do not remember what was to be the date of that event.
Are NATO and the House to understand that these proposed changes have been finalised and that there is not any margin for change?
There is not any margin for change this year. The changes are due to come into effect on 1 May.