Dáil debates

Wednesday, 28 September 2022

Ceisteanna Eile - Other Questions

Housing Policy

11:30 am

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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9. To ask the Minister for Housing, Planning, and Local Government if he will expand on the plans to increase social housing income limits nationally; and if he will make a statement on the matter. [47268/22]

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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18. To ask the Minister for Housing, Planning, and Local Government when he intends to publish and act upon the review completed in November 2021 into the current banding model and income limits applicable to local authorities regarding housing supports. [47347/22]

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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24. To ask the Minister for Housing, Planning, and Local Government the up-to-date position on the review that is being carried out of the income limits for social housing by local authorities; and if he will make a statement on the matter. [47265/22]

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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30. To ask the Minister for Housing, Planning, and Local Government when he anticipates the review into the income limits for social housing to be finalised; and if he will make a statement on the matter. [46933/22]

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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59. To ask the Minister for Housing, Planning, and Local Government if he will make adjustments to the social housing supports income limits for Waterford; and if he will make a statement on the matter. [46879/22]

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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61. To ask the Minister for Housing, Planning, and Local Government his views on raising the income thresholds for social housing in County Offaly. [47232/22]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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71. To ask the Minister for Housing, Planning, and Local Government when income eligibility limits for social housing will be increased in counties Cavan and Monaghan given that the existing limits are unrealistically low at present; and if he will make a statement on the matter. [47234/22]

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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I have raised this issue on a number of occasions, including last February. It is about the social housing income limit. I read the report and the initial review of income limits for social housing. I have a couple of comments. Only seven local authorities nationally have less than 35% of disposable incomes going to rent. That is the benchmark. Between 2011 and the first quarter of last year, Limerick city had the highest rate of increase in rents, at 89.5%. When I looked through the table about the increase in the standardised average, the Minister of State has increased it from band 3 to band 2 in five counties. However, in Limerick city, there has been a 42% increase in disposable income, or 40% for one adult, two children and a couple. I put forward a simple model, which has been done for five local authorities. We would increase the bands. The Government increased them by €5,000 in 2011. I want a blanket increase of €5,000 on all bands and 20% generally.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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The Deputy can come in a second time.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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Second, I want an increase for a dependent adult from 5% to 6% and an increase for a child from 2.5% to 3%.

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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The people who are on social housing waiting lists do not want to hear about reports or promises. They want to see the Government take action that has been long-promised in respect of income limit thresholds. The income limits were introduced, in my view, as a measure simply to reduce the waiting lists. In the interim, they have caused undue hardship to those people who are waiting for housing. My office advocated for a single parent who is working in a low-paid job. She is currently living in her parents' home, sharing a box room with her child. She was provisionally offered a house this month, which was a huge relief. She completed the paperwork only to be then told that she exceeded the income limits by €1,500 a year or €28 a week and the offer of housing was withdrawn. Worse than that, she has been removed from the housing list altogether and she was told that when she gets back on it if her income reduces, she will go to the back of the queue. That is a scandal that needs to be addressed. We need to know when that scandal will be addressed.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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The income threshold for housing has not changed in many years. In the meantime, the cost of housing has continued to climb, adding further pressure to households. We have seen the reports. Aside from the reports, people need to see movement on the day-to-day and the bread and butter. The cost of living has continued to increase, which puts further pressure on people on top of existing pressure. We have seen thresholds being changed in response in respect of fuel allowance, general practitioner cards and various other schemes to support families. This is a significant support for families under pressure to be able to change this income threshold and to give people the opportunity to be considered for housing assistance payment and the various available housing supports.

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
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I welcome that the banding in Clare has been changed so that the threshold to qualify has gone from €26,000 to €30,000 or €27,5000 to €33,000 in the case of a family of four. That is still a low threshold, which artificially keeps the housing list for Clare low. It needs to be looked at, particularly now that we have such inflation. There will be wage inflation, which will see fewer people qualify for social housing and will increase the pressure for affordable housing, because a large cohort will not be able to buy a house. We previously discussed the affordable housing scheme. No local authority houses are being built in Clare at the moment. This forces people to try to get into the market, which puts further pressure on it. Under the other scheme, local authorities will take an equity share but, essentially, everybody is competing for the same houses unless the local authority builds houses.

The local authorities need to build houses, for social housing and for affordable housing schemes.

11:40 am

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I propose to take Questions Nos. 9, 18, 24, 30, 59, 61 and 71 together. I am aware that some of the Deputies are not here.

Housing For All was published in September 2021 and, as part of a broad suite of social housing reforms, committed to reviewing income eligibility for social housing. The review, which examined inter aliathe efficiency of the current banding model and income limits applicable to local authorities, has been completed. The Minister, Deputy O'Brien, recently approved implementation of its recommendations. This included the commissioning of work to scope and develop options for a revised or new social housing income eligibility model. This work will commence shortly under the aegis of the Housing Agency, which has been tasked with commissioning it. It is expected that this work will be completed by the end of 2022.

Pending completion of this work later this year, the Minister, Deputy O'Brien, also approved changes to the social housing income eligibility bands, as mentioned by the Deputies. Five local authorities - Carlow, Clare, Galway county, Laois and Westmeath - will be moved from band 3 to band 2. Accordingly, the baseline for the income eligibility threshold for these areas will increase from €25,000 to €30,000. The change reflects the movement in rents in recent years in these areas and will ensure local authority areas with similar accommodation costs continue to be grouped together in their respective bands. The changes will come into effect from 1 October 2022.

It is now appropriate to await the report I referred to before considering the appropriate income threshold levels for all counties and the potential impact of the changes that might arise. The November 2021 report has been published - I am aware some Deputies have read it - and is available on our Department's website. In a previous reply to a question by Deputy Naughten, the Minister, Deputy O'Brien, has given a commitment to looking at transitioning measures for families going over the threshold. The Minister is not happy with the report but he is looking to the review of the Housing Agency and to have that completed by the year end. We are conscious there is an absolute sense of urgency on this, as highlighted by the number of questions and the comments from the Deputies. The Minister, Deputy O'Brien, is committed to resolving this and looking at those transitioning measures for families who might be just marginally going over the threshold in some areas.

The research part of it is vital. We are not sure whether it is a banding or a blanket approach, as was mentioned by Deputy O'Donnell, but it is important we complete this piece of research before the year end.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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I thank the Minister of State. He and the Minister have done a body of work on this. They have increased the income eligibility threshold in the five local authorities by €5,000. If we look back to 2011, the average industrial wage was just short of €36,000. Now the average industrial wage is just above €43,000 or €44,000. That is a 20% increase. There is now a 20% increase of €5,000 for the five local authorities. I would ask that, as a transitional measure, at a minimum, they should now look to an increase in the threshold for all local authorities by €5,000 in terms of the standard in each of the three bands and increase the 20% for an adult dependant, from 5% to 6% and then for the child dependant from 2.5% to 3%. It is very logical. The Minister of State and the Minister have done it for the five other local authorities. I ask they would do it for all bands. They could take that as a transitional measure pending the outcome of the final report. I have looked at it, and certainly it needs to be addressed. It is coming up as an issue for me in Limerick city and in north Tipperary every day.

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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I have lost count of the number of couples I have been working with who have been removed from the housing waiting lists because they exceeded limits by just a couple of hundred euro in some instances. The system as it applies to County Monaghan is designed so that any couple of which a single party is working will not make it onto the social housing waiting list. The income limit for County Monaghan for a family of two adults and two children is €27,500 per annum. Those people will never qualify for a mortgage. The prospect of private homeownership is not available to them. The Government has provided for precisely zero affordable homes in County Monaghan under the affordable housing scheme. What are we supposed to say to those families who fall into that trap? Should we tell them to rent forever and face the ever-increasing rent prices and costs? Should they essentially remain nomadic for the rest of their lives? My appeal to the Minister of State is not only to review but to create a system so that flexibility can be allowed for those people who breach income limits that have been set too robustly up until this point.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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The cost of living, and just ticking over and keeping going, has continued to rise since that threshold was set. People who were just under that threshold and barely ticking over now find themselves losing eligibility for it.

We have seen the largest social housing push locally in my area, with more than 150 families having moved into brand new social housing over the past year and a half. More houses are being built but I want everybody locally who has that low income to be considered and to have an opportunity to be considered for those homes as they are being built. In the meantime, they must be able to get access to the housing assistance payment, HAP, scheme. At the moment, people are being excluded and people are losing eligibility because of minimal changes in their income. The threshold needs to keep pace with the cost of living and with people's income so that they can be considered.

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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As already said by Deputies across both sides of this Chamber, the reality is there are a very large number of people on very low wages and they are literally being excluded from the social housing list on the basis of anomalies that might appear in their income in a particular year because of shift allowances and so on. This may leave them in a set of circumstances where they cannot rent. I am aware of a number of people in Dundalk in the past while who have been refused in a situation where a circumstance has changed.

Previously, local authorities were able to make a determination on the basis of a four-week period. Now it is done over the entire year, so if anything was to happen, for example, if there was a period where a person was working extra time, and sometimes this can be required in healthcare setting, then their place on the waiting list is null and void and they are incapable of getting themselves on the housing list. They are absolutely screwed and are really on borrowed time.

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
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The increase in the bands in the five counties, including Clare, is to be welcomed. The Minister of State has fairly acknowledged that more work needs to be done and that it needs to be study based. He said he hopes this study is done by Christmas. If I could urge the Minister of State to do one thing, it would be to ensure this study is completed by Christmas so that we can see the criteria. Inevitably, there is always slippage but this is very important and particularly as we are living in inflationary times. Wages are going to rise and people's eligibility is going to drop further, putting social housing beyond the reach of a lot of people who also do not qualify for affordable housing, even if affordable housing was being built, which it is not being in every county at the moment. The Minister of State is smiling. The day he comes to open social housing in Clare, I will be there to congratulate him. I am not trying to score points. I really want to see this happen because there are so many people looking for a decent home.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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We are hearing the Deputies loud and clear. All of the Deputies made their points very well. Some Deputies were not here earlier when the Minister, Deputy O'Brien, was responding to Deputy Naughten. We will do our level best to have that report ready before the year end. The Minister has stated he is not happy and that he wants to resolve this. He is of the view that the Housing Agency is best placed to deliver this report. He has given a commitment that changes will be brought to Cabinet to resolve this once and for all. We can hear from all of the Deputies that the challenges facing families and households with regard to income eligibility is an issue throughout the State.

It is also important to look at the issue of those transitional measures for those families who are slightly over the threshold. We will try to bring in some mechanism to support them as well. I give the commitment that the Minister, Deputy O'Brien, is determined to resolve this and to have this report before the year end.