Richard Boyd Barrett: Opposes council rent hikes, warns on inequality
Richard Boyd Barrett warned against government moves that would increase income inequality and criticised a proposal to raise the share of income council tenants pay from 15% to 18%. He said higher assumed income assessments and unchanged social housing thresholds will push costs onto the lowest-income households and called for action to stop the hikes.
Richard Boyd Barrett outlined Dublin City Council plans to increase the proportion of income that council tenants pay in rent from 15% to 18%. He said this would represent a significant jump for some of the lowest-income households and noted a protest next Monday outside the Dublin City Council offices over the plans.
He stressed that 18% of a tiny income is a large burden and described the change as a cost-of-living hike for the lowest-income families in Dublin City. Boyd Barrett argued the lowest-income people should not be asked to shoulder the shortfall created by other policy choices.
The speaker cited increases in assumed income assessments for certain categories of employee, giving the example of taxi drivers rising from 500 to 750, and noted the cap on subsidiary earners will also be increased. He emphasised that income thresholds for social housing eligibility have not been raised, which can exclude people with slightly higher incomes and leave social housing populated by the lowest earners.
Richard Boyd Barrett called on the government to intervene, stop rent hikes on council tenants and start raising income thresholds for social housing eligibility so the lowest-income households are not made to pay the bill for policy shortfalls.
A responding member acknowledged that income thresholds for social housing had been increased during the last government and said the matter likely needs further attention. The respondent said they would speak to Minister Brown about plans and about Dublin City Council's decisions on rents.
Council rent proposal
Richard Boyd Barrett outlined Dublin City Council plans to increase the proportion of income that council tenants pay in rent from 15% to 18%. He said this would represent a significant jump for some of the lowest-income households and noted a protest next Monday outside the Dublin City Council offices over the plans.
Impact on low-income households
He stressed that 18% of a tiny income is a large burden and described the change as a cost-of-living hike for the lowest-income families in Dublin City. Boyd Barrett argued the lowest-income people should not be asked to shoulder the shortfall created by other policy choices.
Assumed incomes and threshold changes
The speaker cited increases in assumed income assessments for certain categories of employee, giving the example of taxi drivers rising from 500 to 750, and noted the cap on subsidiary earners will also be increased. He emphasised that income thresholds for social housing eligibility have not been raised, which can exclude people with slightly higher incomes and leave social housing populated by the lowest earners.
Policy recommendations
Richard Boyd Barrett called on the government to intervene, stop rent hikes on council tenants and start raising income thresholds for social housing eligibility so the lowest-income households are not made to pay the bill for policy shortfalls.
Reply from the chamber
A responding member acknowledged that income thresholds for social housing had been increased during the last government and said the matter likely needs further attention. The respondent said they would speak to Minister Brown about plans and about Dublin City Council's decisions on rents.
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Transcript
Once again, I want to wish Paschal Donoghue, setting aside our significant political differences, I would say, on a personal level, the best. And the one thing I do know is that Paschal Donoghue was a reader of books. And one book I know he's read, because we talked about it, is a book by Thomas Piketty about the growing inequality and wealth in the world. So he might be interested or indeed maybe supportive of my appeal to the government not to increase income inequality, particularly affecting some of Paschal's constituents in Dublin City, where there is significant concern among council residents and a protest next Monday outside the Dublin City Council offices over plans to increase the proportion of income that council tenants will pay in rent. From 15% to 18%. That would be a significant jump for, remember, some of the lowest income households in the city and in the country. The assumed income of certain categories of employee will also be increased significantly from, for example, 500 to 750 in the case of taxi drivers. And the cap on subsidiary earners will also be increased. Now, this is going to mean significant hikes in rent for some of the lowest income families. Because 18% of a tiny income is a lot. 18% if you're a multimillionaire is not a lot, right? So this is a cost-of-living hike for some of the lowest income families in Dublin City. It's going to affect other places. And because the income thresholds have not been raised, and I want to emphasise this point, this is the reason this is being done. Because we used to have people with higher incomes in social housing. Now they're being excluded from housing lists, segregating the lowest income households, and meaning the rental revenue coming back to local authorities is less. The lowest income people shouldn't be asked to pay the bill for that. So I would ask the government to intervene on this, stop the rent hikes on council tenants, and start to raise income thresholds for social housing eligibility. Thanks very much, Deputy Boyd-Barrad. I think both you and Pascal would be disappointed if you didn't point out your significant political differences whilst doing it in such a courteous way. I would, and I'm going from my memory here, I believe we did increase the income thresholds for social housing in the last government. I also would acknowledge it's something that I think we need to probably do more on over the lifetime of this government. I see it in my own constituency, where incomes have risen, thankfully. But as a result, sometimes people can actually then miss out on ineligibility, and therefore there can be a poverty trap there. So I will talk to Minister Brown in relation to his plans in relation to this as well, and specifically the issue you raised in relation to Dublin City Council and their decisions in relation to rents. Deputy Mayor.