Noel Ahern (Dublin North West, Fianna Fail)
Link to this: Individually | In context

Question 201: To ask the Minister for the Environment, Heritage and Local Government the process used for evaluating the levels of rent paid by local authority tenants; the factors that are taken into account when making an upward or downward adjustment in the amount of rent a person has to pay; if changes to social welfare payments are taken into account in this process; and if he will make a statement on the matter. [47577/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
Link to this: Individually | In context

Local authority rents are set in accordance with a rent scheme adopted by each local council. The making and amending of these rent schemes are an integral part of a housing authority's housing management functions, subject to broad principles laid down by my Department in Circular letter HRT 3/2002 of 6 March 2002.

Housing authorities set out in their rent schemes the income that they will take into account in determining a household's differential rent. Income from social welfare payments can be included as reckonable income for that purpose. Decisions on whether or not to disregard either a proportion of income or particular sources of income (including social welfare income) for the purposes of calculating rents are matters for each individual local authority to consider in accordance with their own rent scheme.

The rent payable by any tenant of a local authority is calculated in relation to that particular household's income. In other words, local authority differential rents are determined on the basis of ability to pay; therefore lower rents are paid by lower-income households. An increase or decrease in a household's income can, in accordance with the authority's rent scheme, result in an increase or decrease in their rent, as appropriate.