Dáil Éireann Debate, Tuesday - 27 July 2021
618. Deputy John Brady asked the Minister for Housing, Local Government and Heritage if a review of the HAP and homeless HAP rates payable for County Wicklow will be undertaken; and if he will make a statement on the matter. [39379/21]
Amharc ar fhreagraIncreased rent limits for the Housing Assistance Payment (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:
http://www.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.
At end Q1 2021, 52.2% of the total number of households being supported by HAP were benefiting from the additional flexibility. When the additional discretion available to homeless households in the Dublin region is removed, 46.4% of households nationally were benefiting from the additional flexibility. In those cases, the average rate of discretionary payment being used was 17.1% above rent limits provided. This increases to 23.5% when the Dublin region homeless area data is included. Wicklow County Council used discretion in 31.4% of HAP tenancies and the average level of discretion applied by Wicklow County Council was 16.8%.
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 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. It is considered that the current maximum rent limits, together with the additional flexibility available to local authorities, are generally adequate to support the effective operation of the HAP scheme.
The Programme for Government commits to ensuring that HAP levels are adequate to support vulnerable households, while we increase the supply of social housing. My Department continues to keep the operation of the HAP scheme under review.
