Jennifer Murnane O'Connor (Fianna Fail)
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I thank the Minister of State for being here, although I am disappointed that neither the Minister nor the Minister of State at the Department of Housing, Planning and Local Government could be here to address this issue. While I understand and respect the fact that all Government Ministers and Ministers of State are busy, the situation with regard to housing is at crisis point and deserves a response from the responsible Minister or Minister of State. That said, I thank the Minister of State at the Department of Justice and Equality for taking this Commencement matter today.

I wish to discuss whether there will be a change to the income threshold for qualification for a place on the housing list in Carlow. This is a very serious issue locally because genuine people who should qualify for social housing are being excluded at present. A family came to me recently seeking my help. They were earning between €350 and €400 per week and were in receipt of family income supplement, FIS. When people qualify for FIS, it means that they are not earning enough and need assistance in meeting their household needs. Despite this, the family was told that they did not qualify for registration on the housing list in Carlow. It is unacceptable that people who are working, trying to make ends meet and who qualify for FIS do not qualify for inclusion on the housing list.

I have consistently raised this issue and have been told that it is being examined. There are people in Carlow and in other counties in the low cap zone who are in limbo because they do not qualify for social housing under the current social housing income thresholds but they do not earn enough to be able to afford a mortgage. They need answers. They are not being included in the social housing waiting lists or on the emergency lists. Those lists are incomplete because these people are crying out for help but are not receiving it.

The most recent summary assessment of social housing needs published in September shows that the number of households in Carlow qualifying for social housing support from the local authority was just 499 which is not a true reflection of the situation on the ground, as evidenced by the number of people coming to my clinics. Seven years have passed since the last review. The social housing assessment regulation in 2011 set the maximum net income limits for each local authority in different bands, according to the area, with incomes being defined and assessed according to a standard household means policy. I understand that a new assessment was due to be done in the summer. There is now an urgent need to finalise this and to increase the income limits for social housing in Carlow and several other counties. There are no millionaires out there looking for help. These are real families who are working hard but are not getting a break. We need to give them a break.

Carlow currently has one of the lowest income thresholds in the entire country. The maximum net income threshold for a single person is €25,000, for a childless couple it is €26,250 and for one adult and one child it is €25,625. The threshold for two adults with one child it is €26,875, while for two adults with more than one child it is €27,500. This compares to a limit of €38,000 in Kildare for two adults with one child and €39,000 for two adults with more than one child. Not only is it unrealistic to have such a marked difference between two counties, the limits themselves are far too low for working adults. These limits provide an incentive to decline opportunities to increase household income. The aim of social welfare is to help people to get on their feet, not to force them onto their knees in order qualify for assistance. There is a difference of almost €11,000 in the income threshold between Kildare and Carlow, while the difference between Carlow and Kilkenny is €6,500. This is inexcusable and is putting enormous pressure on families in Carlow. The Government is well aware that unless a person is on the local authority housing list, he or she will not qualify for rent allowance or for the housing assistance payment, HAP. It is extraordinary that in the midst of a housing crisis, the Government is denying families who are under intense financial pressure access to the rent allowance and the HAP schemes. This Government must ensure that the income threshold in Carlow is increased and is brought in line with the thresholds in neighbouring counties. It must also allow families to earn a second income or to avail of promotion or overtime opportunities in order to better their living standards. We are condemning people by not allowing them to go onto our social housing waiting lists. We are not giving them a chance. What action is being taken by the Department and when will the review of social housing income thresholds be completed? We really need to help these people.These are the working poor. They qualify for nothing but pay out for everything. We want to help everybody. This is about everybody who needs to be on the housing list but is not able to get onto it.

David Stanton (Cork East, Fine Gael)
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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.

Jennifer Murnane O'Connor (Fianna Fail)
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I thank the Minister of State. In fairness, it is a concern that it has been seven years since we have had a review. At our last housing meeting we got an assessment of the price to rent a house in Carlow, which was €700 a month. That is totally wrong. It is €1,000 per month if not €1,100. The figures are totally wrong. The biggest issue here is that when people apply to go on the local authority housing list their overtime, maintenance payments and family income supplement are taken into consideration. That limits the number of people who can qualify. There is no real appeal mechanism. Perhaps we need to look at that.

Mortgages with local authorities are only based on earned income. One has to be earning an income to qualify for a mortgage. That is another bracket. People on family income supplement do not qualify to go on the housing list and people cannot get a mortgage. This is urgent. The figures the local authorities and the Government are giving are totally wrong. We need to help these people. These are the people who cannot save, cannot afford a mortgage and cannot go on the housing list.

David Stanton (Cork East, Fine Gael)
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I thank the Senator again and recognise her deep interest in the research that has been carried out into this matter. I will ask the Minister for Housing, Planning and Local Government to respond in writing to her quite soon on the points she has raised.

Denis O'Donovan (Fianna Fail)
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She has shown her passion for this issue.

David Stanton (Cork East, Fine Gael)
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Absolutely.

Denis O'Donovan (Fianna Fail)
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If the Minister of State is prepared to wait for Senator Byrne, who is on her way, we will take Senator Ó Donnghaile's matter next.

David Stanton (Cork East, Fine Gael)
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Yes.