Local authorities set and collect rents on their dwellings in accordance with section 58 of the Housing Act 1966. The making or amending of such rent schemes is generally a matter for local authorities within broad principles set out by my Department, including that rent levels should be based on income and reflect tenants’ ability to pay and contain a hardship clause under which tenants can pay a reduced rent for a specified period and under certain circumstances.
Local discretion and flexibility are inherent in the devolved function of administering rent schemes. Local authorities carry regularly review and update their Differential Rent Schemes and carry out reviews of their tenants rent accounts to ensure that the rent payable by tenants reflects their income and their ability to pay. Generally, tenants who earn more pay more while those on the lowest incomes are protected to the greatest extent possible. Decisions regarding any increases in the rents charged are entirely matters for individual local authorities as part of their devolved function of rent setting. I have no role in this regard.
Although elected council members have no formal role in relation to rent setting, which is statutorily an executive function, the process of setting rents is considered by elected members through the annual budgetary process. The legislative basis for the budgetary process is set out in the Local Government Act 2001, as amended by the Local Government Reform Act 2014. It is a matter for each local authority to determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources.