Advocates demand social welfare 'overhaul' as families exceed housing support thresholds

Homelessness levels reached a record high for the second month in a row in August with 10,805 people accessing emergency accommodation.

Families could exceed the income threshold for social housing even on the most basic welfare payments, advocates have said, as they urged the Government to complete a review of these thresholds as the homelessness crisis deepens.

Despite an indication from the Department of Housing that this new review would complete its work by the end of the year, charities say it’ll be a “tight” turnaround and it would be “unacceptable” for it to drag into 2023.

It comes as homelessness levels reached a record high for the second month in a row in August with 10,805 people accessing emergency accommodation.

“It’s an ambitious timeline set out but homelessness is so bad now, we need ambition,” said Simon Communities head of policy Wayne Stanley. “Any lever we have needs to be pulled as soon as possible to try reduce homelessness.” 

Focus Ireland director of advocacy Mike Allen, meanwhile, said that families on “very modest incomes” are now more likely to find themselves homeless yet ineligible for social housing supports under the current system.

"The failure to review the income thresholds for access to social housing since 2011 (except for minor changes) demonstrates the same neglect of basic good practice which we also see in the failure to review the maximum rent levels payable under HAP and Rent Supplement," he said.

Thresholds report

During the week the Budget was announced, the Department of Housing published a report on income eligibility thresholds for social housing. It had been completed by The Housing Agency on the department’s behalf.

This long-awaited report, which campaigners had said was badly needed as social housing income limits had remained unchanged since 2011, then recommended another review intended at developing options for a revised or new social housing income eligibility model.

“In this case, we have been asking for 9 months about when the Minister would act on a report he received at the end of last year, and have repeatedly been told that the Minister's decision is imminent,” Mr Allen said.

'Enormous damage'

“Now it appears that the main recommendation of the 2021 report was that a further report was required, but it took 9 months for this second report even to be commissioned. This delay takes no account of the enormous damage which can be done to families when small cost-of-living increases in income, make them ineligible for housing supports.”

This comes against the backdrop of soaring private rents, which have almost doubled in the last 11 years. On the other hand, these income threshold have not.

The report suggested introducing a system “such that there is a closer relationship between the cost of sourcing accommodation and the income eligibility thresholds”.

The current income thresholds to be eligible for social housing supports come under a number of bands. The threshold can be as low as €27,500 for a household of two adults and two children in some counties. Within Cork city, for example, this threshold ranges from €35,000 annual net income (for a single applicant) up to €42,000 annual net income (for a household of 3 adults and 4 or more children).

The report said that there are just seven local authorities in Ireland 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. In Cork city, rent would absorb almost half of a person’s income at the threshold.

However, how exactly this model should change will now be the subject of a new review commissioned by The Housing Agency.

The agency said it has been “requested to progress the latter and commission a more detailed analysis of the current model that will – 

• "Examine its suitability or otherwise having regard, in particular, to the significantly changed landscape since the extant model was introduced in 2011, and 
• “Make recommendations re. a revised or alternative model that more appropriately reflects current circumstances and needs.” 

However, when examining an alternative system that takes into account the needs of vulnerable families, this new review must also consider implications such as increased demand for social housing and HAP, the impact on the private rental market, and the costs to the Exchequer.

The deadline for applications for this tender is Monday, October. 31 According to the documents, the final report will be delivered to The Housing Agency within 14 weeks of commencement, and an interim report after eight weeks.

The Department of Housing had previously said “it’s expected that the work will be complete by the end of 2022” but this end-of-year target would appear to be tight given the deadline and expected turnaround time.

Mr Stanley said that there’s “no point in retracing steps” given organisations have been calling for this for years, but did say “it’s gone on too long”.

He said that income limits should have a “broader scope” and be based on the current cost of living and cost of housing in Ireland.

“We’re never going to return to the late-80s or 90s in level of home ownership,” he said. “But we can create secure, sustainable, affordable homes.”