2026-03-03

Tá áthas orm go bhfuil an tAire ag tógáil na ceiste seo. Dublin City Council's new differential rent scheme, which will begin operating from 6 April next, will see increases in rent for almost all of the city's 68,000 council tenants. The new scheme is supposed to augment the council's maintenance budget. The council currently maintains an ageing housing stock, with over 50% of Dublin City Council properties being built between 1930 and 1977. Previously, Dublin City Council calculated rents based on weekly payments on a percentage of household income rather than market value. Rent was calculated as 15% of the primary earner's income above a €32 to €64 threshold, plus additional contributions from secondary earners, who are charged a maximum of €21. This new scheme will increase the primary earner rate from 15% to 18% of net income, with a €40 cap for secondary earners. Also, a higher self-employed income of €700 per week will be assumed if supporting documentation is not provided. The reality is that these rent increases will disproportionately impact Dublin City Council social housing tenants who are already struggling with the cost of living. While if it is true that there is a funding gap between the cost of Dublin City Council running its social housing programme and the combined income from rents and Government grants, this is something that should directly concern central government. The Department of housing is not sufficiently funding Dublin City Council, which has to maintain some of the oldest properties in the State. The issue of funding or maintenance is now being placed on the shoulder of some of the most vulnerable members of our community. The consequences of these rent increases for many people on low incomes or on a basic welfare payment is that their quality of life decreases. Their struggles with this cost-of-living crisis are greater, and all of this impacts on their mental health and well-being. I have been inundated with calls into my constituency office about these new rent increases. I have had many calls from pensioners who are fearful for the future. Pensioners can ill-afford to lose any more money from their small pensions when the price of energy and groceries are all going up. For example, one elderly couple has been informed that their rent will go from €65 to €89. The primary earner has €303.70 and will pay €44.77 and his wife on €298 will pay €43.74. The primary earner goes from 15% to 18%, less €55. This is a huge increase for a senior citizen of €23.74 per week, and an extra €20 from the secondary earner. That is what has been added on. To give another example, a woman on the lone parent payment with one child and a son on disability is at present paying €78.80. This will now see her payment going up to €118. If the council is underfunded to carry out maintenance works, then it is up to the Government to increase its grant funding. These rent increases will only serve to push communities further into poverty and exacerbate antisocial behaviour. Housing assistance payment, HAP, tenants have been squeezed from two directions with both council rents and private rents rising. HAP tenants will not benefit from any money spent on the maintenance of social housing, and rental accommodation scheme, RAS, tenants will be equally disadvantaged. This new rental scheme is a recipe for adding to the homeless figures, and these rental hikes will exacerbate financial stress and debt, particularly for HAP and RAS tenants and for those in poor quality housing.

I thank Deputy Ellis for tabling this Topical Issue matter. The Housing Act 1966 provides for the charging of rent by local authorities on social housing tenancies. Rents are based on household income levels, with those on lower incomes paying lower rents and those on higher incomes paying higher rents. This system is known as the differential rents system. It is a critical piece of the State's welfare apparatus, subsidising housing costs and supporting households who cannot meet their long-term accommodation needs from their own resources. The making or amending of such rent schemes is a matter for local authorities within broad principles that are set out by my Department. As part of its devolved function in administering rent schemes, my Department understands that Dublin City Council has recently undertaken a major review of its differential rent scheme with the intention of making it fairer and progressive whereby those who earn more can pay more while still protecting those on lowest incomes. Recent analysis by Dublin City Council found more than one fifth of council households have an after-tax income of greater than €1,000 per week. I understand that households in receipt of social housing in the Dublin City Council area pay heavily subsidised rents, with the average charge across the scheme at €83 per week. This average rent is reported to rise to €108 under the changes. The Dublin City Council scheme raises the proportion of income reckonable for rent calculation from 15% to 18% and also takes into consideration the incomes of all subsidiary earners in the household, including adult children who are working. Dublin City Council's new rent scheme is, therefore, progressive in that those households who collectively earn more pay a higher proportion of their income in rent, similar to the PAYE system. The new housing plan entitled Delivering Homes, Building Communities 2025-2030 commits to reviewing the rents paid by social housing tenants with a view to introducing an equitable system of rents that is fair, progressive, sustainable and that protects the most vulnerable. This builds on the work and analysis my Department has been undertaking, which identified that the current differential system varies significantly across the 31 local authorities. While rents are based on household income, the amounts charged and the approaches taken in calculating those rents differ considerably. Proposals will be submitted to the Minister, Deputy Browne, for his consideration in the second half of this year, and any decision to implement a standardised national rents framework will be considered thereafter.

Gabhaim buíochas leis an Aire Stáit. Alongside the cost-of-living crisis we are in that moment, we are now faced with rent hikes by Dublin City Council and there have been rent hikes elsewhere. This affects senior citizens. I mentioned to the Minister of State a couple in their 80s on fixed incomes, and one of them is being charged €43 extra. It comes to €43 extra between the two of them. In another case, it is over €60. It is hard to understand how we can stand over €43 out of €280 being taken from senior citizens. That does not make sense. It is immoral; it is not right. There are flaws in what is being done here. I ask the Minister if State to examine this and see whether that can be rectified because that is far too much to take from any senior citizen. We also have the residential tenancy Bill coming, so we are heading for a perfect storm that is going to increase homelessness substantially. We already have 17,000 people homeless, including over 5,000 children. We are now going to see a massive increase in that homeless figure over the next while. I urge the Minister of State to sit down and think about some of this. When we look at the residential tenancies Bill, what are people to do when their contract is up? Some of them have two- or three-year contracts. Their market value is now going to be set on that tenancy. Market value in Dublin is between €2,500 and €3,000. Some people have been paying far less than that. What is going to happen? They are not going to be able to pay it and they will end up in homelessness. That is the problem. As I said, we have a perfect storm heading our way that will make the homelessness situation even worse than it is already.

I do not agree with the Deputy's hypothesis. He knows well that under residential tenancy legislation, any existing tenant is unaffected by the changes that were passed by this Oireachtas-----

Until their tenancy is up.

Sorry, but I did not interrupt the Deputy.

I am only pointing that out.

If the Deputy will allow me to respond, he gave an example of a tenant with two or three years of a contract. That does not exist. Part 4 tenancies are created after six months, and tenants have protections under the residential tenancies legislation. The new legislation that was passed applies to new tenancies created after 1 March. On the Deputy’s broader point in respect of the rent scheme, which I commented on in my initial contribution, it is a matter for each of our 31 local authorities to set their differential rent schemes. Many people in the Dáil look for devolved functions and more powers for local councils. The Deputy sat on a council. I remember meeting him at various engagements. As Minister of State with responsibility for local government, I am looking forward to receiving the recommendations of the local authority task force, which has the aim of trying to give more powers to local government. This is one of them. This is a reserve function. It is an executive decision to bring forward measures to ensure that stock can be maintained. They have set it at 18% as opposed to 15%, but it is also grounded on the fact that those on the lowest incomes pay the least amount in rent and those on the highest incomes will pay the highest amount. That is a fair and equitable system. It is the system of differential rents that we have in place to support the most vulnerable in this country.