Brian Brennan (Wicklow-Wexford, Fine Gael)
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I represent the new constituency of Wicklow-Wexford, which straddles the border between south Wicklow and north Wexford. As with the rest of the country, in all areas of my constituency there are issues with housing supply and availability of rental properties that are impacting families and communities. However, depending on which side of the border they live on, my constituents will receive significantly different support from the State to assist with the cost of housing. If we take, for example, a couple with three children who are renting a home in the town of Carnew, County Wicklow, if they are eligible for housing assistance payments they can be awarded up to €1,250 on HAP per month to cover the cost of rent. If we travel ten minutes down the road to the neighbouring community of Craanford, County Wexford, a family with a similar composition and income level will be eligible only to receive a maximum payment of €600 under the same housing assistance payment. This is simply not fair and must be addressed.

This is due to the differences in the maximum monthly rent limits for the housing assistance payment in each local authority - for instance, Wexford and Wicklow county councils. The monthly asking price for rental properties of comparable size in both these rural areas is very similar. They would offer access to the same services in the community: schools, sports clubs, local shops, local buses - all that rural life has to offer. One big difference, however, is that the family in Craanford will receive €650 less in the housing assistance payment than the family living down the road.

Both these communities are located within the rent pressure zones, an acknowledgment in itself of the pressures on renters in an area where rents are the highest and rising and where households have greatest difficulty finding affordable accommodation. However, this does not appear to be taken into consideration with regard to the setting of the HAP limits, putting one family at a distinct disadvantage to the other.

The discrepancy gets even starker if you travel ten minutes down the road to Gorey. Gorey is a large, thriving rural town, a great place to live and work, as I well know. With the success of Gorey, however, comes even higher rents and even more pressure on supply. Again, the fact that the Gorey local authority area has been identified as a rent pressure zone is proof in itself of the demand for the rental accommodation in the town, but again, it is not reflected in the HAP limits. Gorey has traditionally had the highest average rent in County Wexford for many years, yet the renters in this town are faced with lower HAP levels than people living just over the border, putting them at a significant disadvantage compared with their neighbouring towns and counties. Yes, it is true that local authorities have the discretion to increase the HAP limits for renters on a case-by-case basis, but this is capped at 35% over the maximum limit and is often offset by a calculation of the tenant's ability to pay, so their hands are tied in terms of flexibility.

The fact of the matter is that we need people from all walks of life living in our towns and villages: workers, families and community members, not just the people who can afford these high rents. We need to support them accordingly and appropriately. We need to ask: is the system working? Is it fair that neighbours are asked to pay the same amount of rent but receive completely different levels of State support to help them pay that rent? Is the blanket approach to HAP limits on a county-by-county basis a reasonable, fair and equitable way to administrate this scheme? Clearly, looking at the disparity between Carnew and Craanford, it is not and we have to address this.

Christopher O'Sullivan (Cork South-West, Fianna Fail)
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I thank Deputy Brennan for raising this important issue. He is in an unusual position in that he is a TD who represents two different counties in a new constituency. I wish him the best of luck and congratulate him on his election.

The Deputy highlighted an issue with regard to discrepancies between different counties. These schemes are constantly under review and we will certainly consider amending them, if necessary, perhaps at a municipal district level. If a degree of flexibility is needed, I will ask the Department to see if there is anything that can be done.

I will explain how we arrived at the limits. Once a household is deemed eligible for social housing support, it is a matter for the local authority to examine the suite of social housing supports available, including the housing assistance payment scheme, to determine the most appropriate form of social housing support for that household in the administrative area of that local authority. A key principle of the housing assistance payment is that eligible households source their own accommodation in the private rented market. The accommodation should be within the prescribed maximum HAP rent limits, which are based on household size and the rental market within the area concerned.

Maximum rent limits for HAP were set for each housing authority area in 2016. This is where the current limits come from. This was done in conjunction with the Department of Social Protection. In reviewing rent limits, the Department worked closely with the Department of Social Protection and monitored data gathered from the Residential Tenancies Board and the HAP shared services centre. In prescribing these limits, household size and prevailing rents in the relevant areas are taken into consideration. I guess that is done on a county-wide basis. The issue the Deputy raised is more localised as some counties are big and there are different population sizes in each county. Each local authority has statutory discretion to agree to a HAP payment above the prescribed maximum rent limit. In July 2022, this discretion level was increased to 35% and local authorities were given the option to extend the couple’s rate to single person households. Up to 50% discretion can be provided in the case of homeless households in the Dublin region. It is a matter for the local authority to determine whether, and to what extent, the application of the flexibility is warranted.

At the end of quarter 4 2024, the number of households being supported by HAP in Wicklow County Council was 1,352 and in Wexford County Council it was 1,108. In Wicklow, 48% of households were benefiting from additional flexibility and were receiving an average discretionary increase above rent limits of just over 22%. In Wexford, there was more use of the discretionary increase available to the local authority, with an average of 64% of households benefiting from the additional flexibility, at an average rate of discretionary payment of almost 27%.

It is not feasible to extend the established rent limits of one local authority area into bordering areas. However, where appropriate, the HAP scheme allows for inter-authority movement to facilitate the movement of HAP households from one local authority area to another in cases where a tenant wishes to access rented accommodation, with HAP support, in another local authority area, subject to certain conditions.

As the Deputy can see, there is a level of discretion available and this was reflected in what he said. Wexford County Council has availed of that discretion to a greater extent. In 64% of cases, it has used that discretion whereas in Wicklow, the figure is only 48%. That reflects the Deputy's point about a discrepancy between the two counties. There is still scope for Wicklow County Council to avail of that discretion more regularly and reduce the gap between the two counties. However, I take the Deputy's point on board. There are discrepancies between areas that are a couple of miles apart. I will certainly have the Department look at this but, as is clear from my response, there is a limit to what we can do.

Brian Brennan (Wicklow-Wexford, Fine Gael)
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I thank the Minister of State for his reply. I am dealing with two families, a brother and sister, one of whom lives in Arklow while the other lives just down the road in Coolgreany. There is a difference of €650 in the payment they receive. Since opening my constituency offices in Gorey and Arklow, the most prominent issue for people coming in the door has been housing. Day in, day out, I meet people just trying to find a place to live, so they can send their kids to the local school, go to work and build a life in the community. They are getting nowhere. There are roadblocks all along the way for these people, as we all know, and one of the biggest is the cost of renting.

The HAP is one of the systems we have in place to support these people in paying their rent. As the examples I cited show, it is not fit for purpose. It is not enough to ask local authorities to look at using their discretion in every case, as the Minister of State mentioned. There are a lot of cases in Wexford but they are only allowed to negotiate discretion of up to 35%. We need to look at every case that is over the limit.

I acknowledge the efforts that have been made across the board by the local authorities in bringing more housing stock into their portfolios. I note Irish Water will be before the Joint Committee on Infrastructure and National Development Plan Delivery later today. We need to get answers. I understand the bigger issue is housing stock but my focus today is on HAP and levelling the playing field between Wicklow and Wexford or between Wexford and anywhere else in Ireland.

Christopher O'Sullivan (Cork South-West, Fianna Fail)
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It is a matter for each local authority to determine what level of support is appropriate for each HAP tenancy within its area, including whether and to what extent the application of a discretionary increase above rent limits is warranted. In doing so, it is the responsibility of the local authority to ensure that tenancies are sustainable. They are advised not to provide HAP support to tenancies where the household would not be in a position to meet the rental cost sought.

I am very conscious of the pressures in the private rental market and my Department continues to keep the operation of the HAP scheme under review. My Department is conscious that the scheme has the potential to have a detrimental inflationary impact on the wider rental market, including for those households which are not receiving HAP support. As such, any changes to the prescribed rent limits in any given local authority can only be taken after detailed and comprehensive consideration.

If amendments are proposed to the caps on a county-by-county basis, it would require further research similar to what was done in collaboration with the Department of Social Protection. I accept Deputy Brennan's point that there are discrepancies within a close geographical area, and that in one case the difference is €600. I reiterate that 35% is a large margin of discretion. There is considerable flexibility within that and I urge local authorities to use it. On the bigger question as to whether rent limits for HAP can be set outside of a county-by-county basis, which is the way we assess them at the moment, I will bring that back to the Department. The current position is that it would be very difficult to do so but I will see if there is something that can be done.

I thank the Deputy again for raising this matter. The best way we can reduce rents and get people into homes is through the provision of housing. That is key, as the Deputy noted.