David Stanton (Cork East, Fine Gael)
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Question 738: To ask the Minister for the Environment, Heritage and Local Government if, regarding social welfare recipients who are local authority tenants, his attention has been drawn to the fact that when social welfare rates of payment are increased it is possible that a part of these increases can be lost through an increase in rental payments to the local authority if the recipient's income goes above the income threshold set by the local authority; if he intends to take steps or issue any directives to the local authorities regarding this practice; and if he will make a statement on the matter. [32742/05]

Noel Ahern (Dublin North West, Fianna Fail)
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Local authorities are responsible, as part of their housing management functions, for the determination of rents of their dwellings, having regard to certain broad principles laid down by my Department in circular letters HRT 3/2002 and HMandAH 1/2004. The circulars ask local authorities to ensure that rent increases do not absorb an excessive amount of increases made for the benefit of persons who depend on social welfare payments and, in particular, on old age pension payments. As a general guideline, local authorities have been advised that no more than 15% of any increase in such pension income should be absorbed by an increase in rent.

Local authorities were also advised to include provisions in their rent schemes for the acceptance of a lower rent than that required under the terms of the scheme in exceptional cases where payment of the normal rent would give rise to hardship.