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.
Local discretion and flexibility are inherent in the devolved function of administering rent schemes. Local authorities carry out regular rent reviews to ensure that the rent payable by tenants reflects their income and their ability to pay. Any increases in income, including those from an increase in social welfare or pension payments, are reflected in the rent calculated on foot of these reviews which are entirely matters for individual local authorities in line with the rent scheme it has in place. I have no role in this regard.
All local authority differential rent schemes contain a hardship clause, which allows that in exceptional circumstances where payment of the rent calculated in accordance with the scheme would, in the opinion of the local authority, give rise to hardship, the authority may agree to accept a lesser sum from a tenant for a specified period. Local authorities will also advise households in financial difficulties of the services of MABS, the Money Advice and Budgeting Service.
