I thank the Deputy for the question. Currently, local authorities charge rent under the Housing Act 1966 and this is known as the differential rents system. It is a critical piece of the State's welfare apparatus that subsidises housing costs and supports households who cannot meet their long-term accommodation needs from their own resources. The making or amending of such rent schemes is generally a matter for the executives of local authorities within the broad principles set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay and also that they contain a hardship clause under which tenants can pay a reduced rent for a specified period and under certain circumstances. Local authorities should review their rent schemes regularly to ensure they are equitable and appropriate to the household means. The Government’s priority is to accelerate the delivery of social housing, with a significant funding package to support this ambition. It is therefore increasingly important that social housing supports are targeted appropriately and managed efficiently. Central to this is ensuring that the social housing rents charged remain appropriate to household means and that charging structures protect the most vulnerable households, including those with children. The current system of 32 individual rent schemes has its strengths. However, rents can vary widely and disparate approaches mean social tenants on similar incomes can pay significantly different rents for similar properties merely because of the local authority area they reside in. The new housing plan Delivering Homes, Building Communities commits to reviewing rents paid to local authorities and AHBs with a view to introducing a national framework that provides a consistent and equitable system of rents and protects vulnerable households.
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The Deputy asked whether it will result in increased or decreased rents. As I outlined in my initial response there are significant differences in rent schemes from local authority to local authority. Somebody with a given income in one council may be paying more than someone on a similar income in a different local authority area. There is a national framework contained in the housing plan. Options will come forward to the Minister in the second half of this year. Obviously we will look at what the best system and approach is at that point. It is true to say that in some local authority systems, it ranges between 10% and 20% of income and different approaches are taken to secondary earners. We set a broad framework. It is probably appropriate at this point that there be a more streamlined system where local authorities cannot have as broad a range as they have had heretofore.
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I thank the Deputy. In the premise of his follow-up question, he is determining the outcome of this review. He is stating the outcome of it will be that we will go to the highest rent provided by a local-----
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I did not interrupt you, Deputy.
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I did not-----
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Deputy Murphy had an opportunity to make his comments. I am responding to him. He is determining the outcome of the review. I am saying that a review is under way and that proposals will be brought to the Minister in the second half of this year. There are varying discrepancies between some local authorities. I am not determining what the outcome will be. Some local authorities have a higher percentage and some have a lower one. I am not going to determine what the outcome of the review will be until it has been undertaken.
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