James Browne (Wexford, Fianna Fail) | Oireachtas source

I thank Deputies for their valuable contributions to this important discussion. As stated earlier by the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, the income eligibility thresholds for social housing supports were introduced in 2011 with the key objective of reserving housing assistance for households unable to secure accommodation from their own resources. As a direct response to the increase in the cost of accommodation and the cost of living since the thresholds were introduced, the Minister has acted responsibly to assist vulnerable households who have been most impacted and increased the thresholds by €5,000 across the board pending the development and introduction of a new model in 2023. The increase will bring an estimated additional 16,000 households into the net, lessening the impact on disadvantaged and vulnerable households of the increase in the cost of accommodation and the cost of living generally, and ensuring social housing supports, including the housing assistance payment, will be available to those who need them most. The changes will come into effect from 1 January 2023. This timeline provides local authorities with a minimum notice period to effect any administrative changes that may be needed prior to the revised thresholds coming into effect.

It is important to reiterate that any negative impact on households from the timing of the introductions will be mitigated by the transitional arrangements the Minister has already outlined. While households can reapply and qualify again at any stage, in the normal course of events they would lose time already spent on the social housing waiting list. While such an outcome arises any time there is a recalibration of the income thresholds, such changes should ensure fairness is maintained across the system as a whole and any unintended consequences are mitigated to the greatest extent possible.

The transitional arrangements effectively mean that any household deemed ineligible under the previous thresholds and removed from the relevant local authority waiting list since 18 November 2021, which was the count date of the 2021 summary of social housing assessments, but which now again qualifies because the thresholds have increased, can retain the time already spent on the list as well as any time they would have accrued had they not been removed in the first instance. The effect is to backdate such an application by 18 months. These arrangements will remain in place until June 2023, which will ensure that local authorities have sufficient time to notify impacted households and for those households to resubmit their applications for consideration under the new thresholds. Households that resubmit applications after 30 June 2023 will not be able to retain time previously accrued or which would have accrued to them had they not been removed from the list. The transitional arrangements do not apply to households who applied since 18 November 2021, were deemed ineligible but now qualify, and who were not on the housing list at the time they applied. The changes have been made prior to introducing an alternative model in 2023. The development of the new model, which includes a review of the effectiveness of the existing model and consideration of alternative approaches, will be completed and proposals submitted for the Minister's consideration in quarter 1 of 2023.

This work is not without complexity. It is not simply a matter of increasing the thresholds by €1,000, €5,000 or €10,000 merely because doing so will qualify additional households for support. The analysis required is complex. It is critical that any new model, or even a simple recalibration of income limits, reflects the spatial variations in housing costs and incomes, accounts for different household compositions by reflecting commensurate differences in housing and other costs, and targets housing supports towards households with the greatest need. Assessing income, life cycle and other household characteristics is key in this respect, particularly insofar as they determine disadvantage induced by housing costs.

The consequences and impacts of any changes also require measured consideration. There may be implications for the private rental market, including inflationary impacts on rents. There will be implications for cost rental and affordable purchase, and other similar policy interventions.

The most recent changes to thresholds have already reduced the differential between the social housing thresholds and the cost rental eligibility ceiling of €53,000 in those areas where affordability interventions will be delivered, and any further adjustments will have to be carefully considered. We must also consider the risk, given demand is likely to exceed supply into the medium term at least, that widening income eligibility thresholds will hinder supports from being targeted at those on the lowest incomes. While the Government is committed to ensuring supports are available to households with the greatest need, it must strike a balance between doing so and setting thresholds at appropriate levels. All of these issues and more have to be considered before any more fundamental changes can be made.

The overarching principle of social housing support is to secure adequate housing for those households which are unable to provide accommodation from their own resources and have an identified long-term need. The determination of such a need, and of whether a household meets the income criteria, is based, among other things, on their preceding 12 months' net average income prior to the date of receipt of application. This approach, which was introduced in early 2021, reflects the long-term nature of social housing support. It ensures the most comprehensive picture of current and previous income is available at assessment, it ensures fairness and equity, and it ensures those with a continuing long-term need are prioritised.

Concerns have been raised with the Department of Housing, Local Government and Heritage regarding the unintended consequences of this approach. For example, households, some of which have been on waiting lists for long periods, are being removed from the lists unfairly following assessment under the new requirements and have fallen foul of unintended consequences arising from the policy. Of course, while the Minister, Deputy Darragh O'Brien, is sympathetic to the very challenging circumstances faced by households in such cases, he believes local authorities are correctly interpreting and applying the requirements. Similarly, the Minister is not aware of any anomalous outcomes arising or any difficulties being experienced by local authorities applying requirements, and the outcomes in these cases have been consistent with the policy's intent and the principles of social housing support.

Demonstration of long-term need will continue to be a key pillar of the social housing eligibility model. This will not change. It would not be appropriate to assess and determine such need by merely reviewing a household's current income. To do so would be contrary to the intent of the policy and would be an assessment of very short-term rather than long-term need. It would require local authorities to make decisions in respect of circumstances that may or may not continue beyond the short term, thereby introducing uncertainty and inequity into assessments and undermining the principle of social housing as a long-term support.

I will conclude on a general note. There is no doubt but that there are very real problems currently in housing. The Minister is working tirelessly to resolve these problems and doing so will remain his absolute priority. The measures outlined this evening will help to ensure that the most hard-pressed households can access secure, good-quality housing, and that sustainable mechanisms are in place to meet current and future demand for social housing supports. The Minister accepts we do not have nearly enough social housing to meet our needs. While increasing the supply of housing is not something that can be delivered immediately, we are clearly starting to see considerable progress and homes are being built at record rates.

Many things have changed in the 15 months since the initial launch of Housing for All. It is all too easy to criticise and wilfully ignore the significant external shocks the system has experienced on foot of the Covid-19 pandemic and the Russian invasion of Ukraine. Despite these shocks and the subsequent rising inflation, increasing labour and material costs, increased interest rates and supply chain disruptions - it is convenient to forget we have limited control over these matters - we are significantly increasing housing supply in this country on the back of measures introduced by this Government under Housing for All, and we will continue to do so into the future. This year, we will deliver some 8,000 more homes than in 2021. We expect to deliver a similar, if not greater, number next year. While Housing for All is a plan for everyone, it is appropriate that it places a significant focus on providing social housing. To this end, it commits to delivering over 9,000 new-build social homes next year.

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Increasing our social housing stock will reduce the demand on our private rental market and the reliance on the rental market to house those on social housing waiting lists. The Minister continues to make progress and deliver on the commitments under Housing for All. Beyond the measures in Housing for All, the Minister continues to respond urgently where there is most need as he has already done through the winter eviction ban, the renter's credit and the delegated sanction for local authorities to acquire properties where this can prevent homelessness. The Government is committed to putting in place the measures needed to increase the supply of social housing supports. In the meantime, it will continue to protect the vulnerable and provide as many social, affordable and private homes as are needed to end the housing crisis.

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