The right of local authorities to set and collect rents on their dwellings is laid down 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 set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay.
Local discretion and flexibility are inherent in the devolved function of administering rent schemes. Decisions regarding how the rent charged is calculated and any increase or decrease in the amount of rent charged and the type of household income that is reckonable or disregarded for rent purposes under each Differential Rent scheme is a matter solely for individual local authorities. I have no role in this regard.