All income eligibility limits for social housing must be raised by 20% – O’Donnell

All three income eligibility limits for social housing must be raised by 20% to help ensure we can meet the housing needs for people, according to Fine Gael TD Kieran O’Donnell.

Deputy O’Donnell is advocating for a minimum increase of €5,000 across all three income bands to be eligible for social housing.

The issue has been considered in a review of social housing supports and income limits which was published by the Department of Housing last September as part of Government’s Housing for All Plan.

Deputy O’Donnell, who has consistently raised the matter in the Dáil, said: “We last had an increase in general social housing income limits in April 2011 when average earnings per employee were €35,915 according to the CSO (Central Statistics Office).

However, average annual earnings are now approximately €45,324, which is over a 20% increase since 2011.

“Since February, I have asked the Taoiseach and Housing Minister to ensure the current social housing income limits (Band 1 – €35,000, Band 2 – €30,000 and Band 3 – €25,000 depending on geographical location) be increased by a minimum of €5,000 across all 3 income limit bands.

“In addition, there should be a 20% minimum increase from 5% to 6% for each additional household member (with a cap increase from 10% to 12%) and a similar minimum 20% increase from 2.5% to 3% for each child, with no cap.

“This is reinforced by the main findings of the ‘Review of Income Eligibility for Social Housing Support’ report under the Housing for All document, which was supported by the Fine Gael Parliamentary Party and Councillors nationwide,” Deputy O’Donnell said.

According to the review, the current three band structure for social housing income limits is no longer internally logical given the movement in rents over time. It also finds there are only 7 local authorities in Ireland, being 1 in 4 out of a total of 31 local authorities, where a single adult earning at the relevant income threshold would be able to secure accommodation such that their rent absorbed less than 35% of their income.

The report also recommends that detailed research is conducted into the feasibility of removing the current bands and introducing a system such that there is a closer relationship between the cost of sourcing accommodation and the income eligibility thresholds.

Deputy O’Donnell continued: “Minister O’Brien recently moved five counties from band 3 to band 2 income thresholds for social housing, giving rise to a 20% increase of €5,000, which is recommended as an interim measure in the review report before more detailed research is undertaken.

“As a further interim action, with 24 of the 31 local authorities showing house rents absorbing more than 35% of a single adult’s income, I think the Housing Minister should extend this measure of a €5,000 increase across all three income threshold bands, together with a 20% minimum increase from 5% to 6% for each additional household member and 20% for each child, from 2.5% to 3%.

“I acknowledge that the Minister recently approved proposals to develop options for a revised or new social housing income eligibility model, which is proceeding under the auspices of the Housing Agency.

“Government is focused on achieving targets set out under Housing For All, supply is increasing and we have seen signs of increased construction activity, which is critical to making rents more affordable.

“Housing for All commits to delivering of 47,600 new build social homes from 2022-2026, with funding in place this year to deliver 11,800 social homes, including 9,000 new build homes.

“However it is incumbent on us to redouble our efforts in accelerating the delivery of housing supply, particularly given the current additional pressures on the sector.

“I believe changing these income thresholds to make more individuals and families eligible for social housing schemes is necessary to keep pace with evolving housing needs.”

Current Social Housing Income Limits: 137495_3dbeb746-fb85-41ab-bbb7-9c9748e5be41 (4).pdf

Review of Income Eligibility for Social Housing Support: https://assets.gov.ie/235484/40ed4fc0-d9b7-43b5-bd96-9436f6773c73.pdf