I propose to take Questions Nos. 498, 505 and 508 together.
Under the Housing Assistance Payment (HAP) scheme, eligible households source their own accommodation in the private rented sector and the tenancy agreement is between the HAP recipient and their private landlord. The local authority does not have a role in the tenancy.
Each local authority has statutory discretion to agree to a HAP payment up to 20% above the prescribed maximum rent limit in circumstances where it is necessary, because of local rental market conditions, to secure appropriate accommodation for a household that requires it. It is a matter for the local authority to determine if the application of the flexibility is warranted on a case by case basis. Additional discretion of up to 50% above rent limits is available to assist in housing homeless households in the Dublin Region only.
My Department is aware that some HAP recipients are making payments directly to their landlords, beyond the amount of HAP being paid on their behalf. While there is no legislative provision precluding HAP supported households contributing towards the monthly rent required by the landlord, local authorities have a responsibility to ensure that tenancies are sustainable and that households in HAP are in a position to meet the rental costs involved.
HAP tenants 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.
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 Q4 2021, the scheme had a 99% differential rent collection rate. Therefore, only a very small number of tenants have fallen into difficulty with their differential rent.
Under Housing for All, my Department was tasked with undertaking an analytical exercise to examine whether an increase in the level of the 20% discretion available to local authorities under HAP is required, in order to maintain adequate levels of HAP support.
I am working with Government colleagues and the Department of Public Expenditure and Reform to provide for an increase in the HAP discretion rate to 35% and, for new tenancies, to expand the couple’s rate to single persons. This will secure more tenancies and prevent new entries to homelessness. We do need to decrease our reliance on subsidies but we will only do that through significantly scaling up our social housing supply. Housing for all sets us on a pathway to delivering 90,000 social homes between now and the end of 2030.
