Fergus O'Dowd (Louth, Fine Gael)
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316. To ask the Minister for Housing, Planning, and Local Government if he will consider increasing the discretionary housing assistance payment rates for County Louth in view of the very significant increases in private home rental costs since the pandemic began in particular for single persons or couples on low income who are finding it more difficult to source affordable housing assistance payment tenancies; and if he will make a statement on the matter. [23169/21]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Under the HAP scheme, tenants source their own accommodation in the private rented market. The accommodation sourced by tenants should be within the prescribed maximum HAP rent limits, which are based on household size and the rental market within the area concerned.

Each local authority has statutory discretion to agree to a HAP payment up to 20% above the prescribed maximum rent limit to secure appropriate accommodation for a household that requires it, or up to 50% in the case of homeless households in the Dublin region. It is a matter for the local authority to determine, on a case by case basis, whether, and to what extent, the application of the flexibility is warranted.

At end 2020, 37.9% of the total number of households being supported by HAP in Louth were benefiting from the additional flexibility. In those cases, the average rate of discretionary payment being used was 17% above rent limits provided.

My Department keeps HAP rent limits under constant review, as well as the use of discretion by local authorities. I am satisfied that the current maximum rent limits, together with the additional flexibility available to local authorities, are generally sufficient to support the effective operation of the HAP scheme. However, I continue to keep the matter under review.

All households in receipt of HAP pay a differential rent based on the rent scheme set by the relevant local authority. The right of local authorities to set and collect rents on their dwellings is set out in section 58 of the Housing Act 1966. The making or amending of such schemes is an executive function and is subject to broad principles laid down by my Department including that; the rent payable should be related to income and a smaller proportion of income should be required from low income households; and that 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.

Local discretion and flexibility are inherent in the devolved function of administering rent schemes. Decisions regarding the increase or decrease in the rent charged to tenants of local authorities are matters for individual local authorities in accordance with its differential rent scheme.