John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter, which I am taking on behalf of my colleague, the Minister. I thank him for the opportunity to outline the current position. In response to his final question, my understanding is this is not currently a reserved function for local authority members. I will try to get an answer on the effect of SI 214 of 2014 on the differential rent scheme.

Section 31 of the Housing (Miscellaneous Provisions) Act 2009, which has not been commenced, provides that the Minister may make regulations providing for matters to be included in a rent scheme to be made by a housing authority, including the manner in which the financial circumstances of households and their ability to pay rent shall be taken into account in determining rent. This includes the level, type and sources of household income that may be assessed for the purposes of determining rents; the manner in which adjustments may be made to the rent in respect of any obligations imposed on the tenant under the tenancy agreement relating to the maintenance of the dwelling; the amount or method of calculation of any allowances in respect of rent that may be made for dependants; and the procedure for rent reviews during the period of a tenancy, having regard to any changes in household circumstances or income levels. Section 31(7) of the Housing (Miscellaneous Provisions) Act 2009 provides for, among other provisions, the making or revocation of a rent scheme to be a reserved function. However, as indicated earlier, this section has not been commenced.

The practice of a national differential rent scheme was abandoned in 1986, when rent setting was devolved completely to individual housing authorities, subject to broad principles laid down in departmental guidance. Housing authorities are also empowered under section 58 of the Housing Act 1966 to include charges in the rent relating to costs of works and services provided to dwellings under the Housing Acts. The current practice involves a disparate approach across housing authorities to rent setting for accommodation funded wholly by the Exchequer. Whereas all housing authorities charge rents related to household income, similar households in similar accommodation are charged varying amounts of differential rent depending on which local authority is letting the accommodation. Individual authorities also differ on matters such as types and amounts of income reckonable for differential rent purposes. On that basis it is recognised that a greater degree of national uniformity needs to be introduced.

Considerable work has been carried out by the Department in developing a national rents framework, including common income thresholds and disregards. The new system aims to be more equitable and transparent, with regulations setting out a common method for determining household income across the country for rent purposes. This work is now being examined further in light of a broader commitment in Rebuilding Ireland - Action Plan for Housing and Homelessness to review the disparate systems of differential rent for social housing in place across local authorities. The objective is to ensure housing supports are fair and sustainable, to prioritise those on the lowest incomes and to avoid creating welfare traps that may prevent people from either returning to work or the private housing market. The Minister expects the results of this review will be available shortly and on foot of that we will consider the appropriate next steps.

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