David Stanton (Cork East, Fine Gael) | Oireachtas source

I thank the Senator for tabling this Commencement matter. The Minister, Deputy Eoghan Murphy, is unfortunately not available and has asked me to send his apologies personally. I will make him aware of the debate and of what the Senator has said.

On 1 April 2011 the social housing assessment regulations introduced a new standard procedure for assessing applicants for social housing in every housing authority. This included the introduction of maximum net income limits for each housing authority in different bands according to the area, with income being defined and assessed according to the standard household means policy. Before the new system was introduced there was considerable inconsistency in the approaches taken across local authorities. Some authorities had income limits for social housing and some had none. How income was assessed against limits also varied widely, with different arrangements in place in various housing authorities. The income bands and the authority area assigned to each band, which were introduced in 2011, were based on an assessment of income needed to provide for a household’s basic need, plus a comparative analysis of the local rental cost of housing accommodation across the country.

The limits also reflect a blanket increase of €5,000 introduced prior to the new system coming into operation in order to broaden the base from which social housing tenants are drawn and thereby promote sustainable communities. This increase has largely had the welcome side effect of future-proofing the income bands so that they still very much cater for those who find that they must spend a very high proportion of their income on rent in order to afford to pay for their housing needs from their own resources. The maximum bands apply to single adult households and can be adjusted by housing authorities to take account of additional household members. These allowances are 5% for each additional adult household member, up to a maximum of 10%, that is, two additional adults, and 2.5% for each additional child, again up to a maximum of 10%, that is, four children.

There are currently three income bands applicable across the country and Carlow County Council is in band 3, along with 15 of the other 30 local authorities. This reflects the fact that the cost of rental and housing accommodation in the county is, relatively speaking, lower than in higher band counties such as, for example, those in the greater Dublin area. The income threshold for a household of two adults and two children in County Carlow is €27,500 net income per annum with higher limits applying to larger households up to a maximum of three adults and four children.

It is important to note that under the household means policy, which applies in all housing authorities, the thresholds for social housing assessment are based on net income. This is defined as gross household income less income tax, PRSI and the universal social charge. Therefore, the €27,500 figure I referred to as the income threshold for a household of two adults and two children in Carlow is the net income figure after tax, PRSI and USC. The household means policy also provides for a range of income disregards and, in addition, housing authorities have discretion to decide to disregard income that is temporary, short-term or once-off in nature.

I can confirm to the Senator that as part of the broader social housing reform agenda, a review of the income eligibility limits for social housing supports is under way. It is unfortunately not possible to give a definitive timeline at this stage for the completion of the review as it will also have to take into account the impact of other parallel initiatives being brought forward on affordability and cost rental. In that context it should be noted that, in terms of the cohort of people that are just over the income eligibility thresholds for social housing support, the Government is responding to the needs of such households through a number of initiatives including a new affordable housing scheme and a cost rental scheme. In addition, earlier this year a new local authority mortgage scheme for first time buyers, the Rebuilding Ireland home loan, was introduced.