Séamus Healy (Tipperary, Workers and Unemployed Action Group)
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Draconian rent increases for local authority tenants have been introduced by Tipperary County Council since 2 July. It has no regard for the effects these huge increases have on the tenants concerned. They have been introduced without the specific approval of the local councillors, on the basis that management claims the making of a differential rent scheme is a function for the manager and not the elected members.

Section 31 of the Housing (Miscellaneous Provisions) Act 2009 made the making and revocation of a differential rent scheme a reserved function of local authority members. This provision was never introduced, despite promises it would be as far back as 2011. A similar provision to make the revocation or making of a differential rent scheme a reserved function of local authority members was included in the Local Government Reform Act 2014. That was on the basis the Government was delegating to local councillors new functions at the same time local councils, town councils and borough councils were being abolished. There is now confusion as to whether that provision in the 2014 Act is operational.

I have a copy of a statutory instrument that seems to suggest the Act is operable. It is SI 214 of 2014 in the name of Phil Hogan who was the Minister for the Environment, Community and Local Government at the time. One section of the order states 1 June 2014 is appointed as the day on which the Local Government Reform Act 2014, in so far as it is not in operation, comes into operation.

The increases are draconian and I have numerous examples. To give a flavour of the type of increases introduced, the rent of a family of four comprising two young children and both the husband and wife on social welfare with one on a carer's allowance went from €39.80 to €91.80, a difference of €52 per week or €208 per month. I have a number of similar cases. These draconian increases should and must be reversed. What is the position in the making of a differential rent scheme? Is it a reserved function of local authority members? If not, when will it be made a reserved function as set out in the 2009 and 2014 legislation? It is clear that management in councils throughout the country is now using this confusion to impose huge and savage increases on local authority tenants.

John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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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.

Séamus Healy (Tipperary, Workers and Unemployed Action Group)
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I thank the Minister of State for the response but it is the usual Department script. We need to know why, nine years after the 2009 Act, the rent differential scheme is not yet a reserved function for local authority members. It is now four years since the introduction of the Housing Act 2014. Reserving this function for local authority members is an element of both Acts. Will the Minister of State clarify the position of SI 214 of 2014? The increases that have been introduced are horrendous. The example I provided indicated a more than 100% increase but I have numerous others.

There is a new method of assessing incomes of joint tenants or of partners and spouses. It imposes a 20% rather than 10% assessment of additional income. In many cases, there are husbands and wives, spouses or partners where one has a half-rate carer's allowance. The new system reduces the €107 per week of the half-rate carer's allowance by €21.40, or 20%. These carers are looking after spouses or partners on a 24-7 basis but they are effectively being cut by 20%. There is a similar issue with family income supplement, as workers on very low incomes entitled to family income supplement lose 20% under these new rent rules. These are horrendous increases. When will the process become a reserved function, as indicated in two Acts going back over nine years? We have heard promises before but they have not been implemented. When will the reserved function be implemented finally?

John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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The only answer I can give the Deputy is that the results of the review undertaken by the Minister and his officials on his behalf are imminent. Following that, a scheme for a more uniform system of differential rent will be introduced. That is the Government's proposal. I am not sure why the original proposal from the 2009 legislation has not yet become law. I will endeavour to find out. The Deputy cannot expect to ask about SI 214 of 2014 and expect me to know the answer off the top of my head but I will get the answer to that question. The review's results are imminent and the Minister has indicated he will act on it.

It is unfair that there is not a common yardstick for different types of income in the calculation of differential rents across local authorities and the Deputy is right to point that out. That is one of the main purposes of the review. This stems from the fact that the common scheme disappeared in 1986 and was replaced with individual rent setting by housing authorities. There are 31 of them now and there would have been many more in 1986. The purpose of the review that the Minister will act on is to ensure the same broad standards and system apply in the calculation of differential rents in Tipperary County Council, Kilkenny County Council and every other local authority in the country. I will revert directly to the Deputy on SI 214 of 2014.