People are beginning to go into unemployment because they’re better off than if they were paying HAP (Housing Assistance Payment) rent, a Tipperary councillor told a recent council meeting this December.
"The amount of rent that is to be paid in top up for people who want to go into a HAP house, they just can't get it. Even with the discretionary rise, it's not making up the difference," said Independent councillor Liam Browne.
Cllr Browne told the meeting that ways to solve this issue would be to increase the amount of HAP payment given to tenants or to increase the discretionary limit given to tenants.
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The 35% discretion limit means that a local authority can approve rent of up to 35% higher than the area's maximum HAP rent limit.
The Cashel-based councillor made the comments during the monthly meeting held in December for the Tipperary/Cahir/Cashel Municipal District.
One main issue with the HAP scheme is that tenants are removed from the main social housing waiting list, though they can stay on a transfer list.
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Cllr Browne told the meeting that people in Tipperary were thinking of quitting employment, due to not being able to afford the large 'top-ups' for their rent.
This is due to HAP rent limits having not kept up with steep rises in private rental costs over the years.
“There is a point in the 31,000 limit where people are actually better off not taking employment because they are then going out of the social housing scheme. Even when they’re in it, they can’t get HAP. They’re screwed altogether because they can’t afford the rents,” he told the meeting.
A member of the council’s housing team responded to Cllr Browne stating that the HAP scheme has remained unchanged since 2018.
“In regards to the HAP, that’s something that’s come up in our Housing SPC. In relation to HAP nationally, we’re all aware that people are paying top-ups to their landlords and that there’s a 35% discretion,” she said.
“A letter has gone from the SPC to the Minister, specifically now because of rent pressure zones, for the government to look at the caps,” she concluded.
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