Written answers

Thursday, 14 February 2008

Department of Environment, Heritage and Local Government

Local Authority Housing

5:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 232: To ask the Minister for the Environment, Heritage and Local Government if, under his Department's regulations on rent payments to local authorities, the living alone allowance and the fuel allowance are excluded in the determination of the total family income that local authorities calculate the rent payments on; and if he will make a statement on the matter. [5835/08]

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 247: To ask the Minister for the Environment, Heritage and Local Government the regulations his Department has to determine the amount that a local authority can charge a tenant for the renting of a local authority house; if a 10% rise or greater in rent is permissible under the regulations in one actual increase; if there is a national average determined by him in relation to such rent increases; if his attention has been drawn to the fact that such a 10% or greater increase in rent will in fact mean that a social welfare recipient will pay all of the recent family budget 2008 increases to the local authority as part of the rent increase (details supplied); and if he will make a statement on the matter. [5914/08]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 232 and 247 together.

The making and amending of rent schemes is the responsibility of local authorities as an integral part of their housing management functions, subject to the following broad principles laid down by my Department in Circular letter HRT 3/2002 of 6 March 2002:

the rent payable should be related to income and a smaller proportion of income should be required from low income households;

allowances should be made for dependent children including those under 21 years of age in full-time education;

a contribution towards rent should be required from subsidiary earners in the household;

provision should be included 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; and

appropriate local factors should be taken into account including the costs of the maintenance and management of the stock of rented dwellings and the adequacy of the rental income to meet such costs.

Decisions on whether or not to disregard either a proportion of income or particular sources of income, including the living alone allowance and the fuel allowance, for the purposes of calculating rents are matters for each individual local authority and I have no function in such matters. I consider it important that housing authorities should ensure that rent increases do not absorb an excessive amount of increases in income of tenants on low-incomes, dependent on Social Welfare payments, and in particular, on Old Age pension. My Department advised authorities in Circular letter HRT 3/2002 that, as a general guideline, it is considered that no more than 15% of any increase in such pension income should be absorbed by an increase in rent.

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