Differential Rent Scheme 2010
- Scope of Scheme
- Calculation of Rent
- Maximum Rent
- Minimum Rent
- Rent Reductions
- Review of Income
- Rounding up and down
Scope of Scheme
- Rents of dwellings let on differential rent will be calculated in accordance with paragraph 3 below, as a proportion of assessable income of the principal earner ranging from one-eleventh to one-sixth in accordance with a graded scale which includes allowances for the principal earner and dependent children together with a contribution from any subsidiary earners in the household. Rents will be based on certified income of the week ending 31st January 2010. In determining rent in the case of a new or transferred tenancy, assessable income should be reckoned by reference to the income situation of the family as at the date of commencement of tenancy.
- Assessable income of the principal earner is the income from the following sources, assessed in full, but reduced by pay related social insurance contributions and any income tax payable on such income
- Income from employment including self-employment.
- All social insurance and social assistance payments, allowances and except payment listed at 6. beneath.
- Income from pensions of kind not already included at b. above.
- In the case of self employment, tenants will be obliged to submit audited accounts for the previous year and the last income tax assessment from the Inspector of Taxes before the 31st March 2009
- Income of any employed person is, in general, the normal weekly rate of remuneration as defined in Section 2 of the Holidays (Employees) Act, 1973. All other regular payments in the nature of pay are included, including overtime.
- Principal earner is the person (either the tenant or any other person normally resident in the household) who is in receipt of the highest assessable income within the household.
- Subsidiary earner is a member of the household, other than the principal earner who has an income.
- Income form the following sources is disregarded for the purpose of calculation of rents:-
- Children's allowance, orphans allowances or orphans pensions, payable under the Social Welfare (Consolidation) Act, 1981;
- Scholarships;
- Allowances payable under the Boarding out of Children Regulations 1954;
- Allowances for domiciliary care of handicapped children under the Health Act, 1970.
- Lump sum compensation payments.
- Carer's Allowance
- In the case of Community Employment Scheme and Back to Work Schemes, the difference between the appropriate rate Unemployment Benefit/Assistance and the allowance being paid to the tenant is disregarded.
- Fuel Allowance and Living Alone Allowance
- Family Income Supplement (FIS)
- Blind Pension
- Job Initiative Scheme
Calculation of Rent
The rents of dwellings let on differential rent will be determined on the basis of the following scales of assessable income calculated in accordance with the notes below, to which the principal earners allowances and the rent percentage of 17% shown should be applied.
| Income Band | Less Principal Earners Allowance | Rent Percentage |
|---|---|---|
| Up to €210 | €40 | 17% |
| Over €210 up to €240 | €33 | 17% |
| Over €240 up to €245 | €29 | 17% |
| Over €245 up to €265 | €20 | 17% |
In addition to the allowance for principal earner, allowances should be made for dependent children on the basis of €6.00 per week for each of the first four children and €8.00 for each additional child of 16 years or under or who being under 21 is attending, a full-time course of education is wholly or mainly maintained by the principal earner.
A €20.00 discount will apply for elderly persons 65 years or over.
It will be open to the Council to make appropriate adjustments as the marginal points of the scale when calculating rent.
In respect of Subsidiary Earners, a maximum contribution of €18.00 from each earner is to be applied.
Tenants who fail to submit income details on request for a Rent Arrears Assessment at any time during the year will be charged €100.00, the maximum rent, until such time as the information is submitted.
Maximum Rent
The weekly maximum rent of each local authority rented dwelling both new and existing will be a standard €100.00 per week.
Minimum Rent
In determining rent, a minimum rent will apply as follows: -
- 4 bed roomed house or over : € 29.00
- 3 bed roomed house : € 25.50
- 2 bed roomed house : € 20.50
- 1 bed roomed house/unit : € 16.50
Rent Reductions
In exceptional circumstances where payment of a rent calculated under paragraph 2 and 3 would, in the opinion of the authority, give rise to hardship, the housing authority may agree to accept a lesser sum from a tenant for a specified period.
Review of Income
The tenant should notify the local authority immediately of any change in income or in family circumstances.
Rounding Up and Down
Where the rents (fixed and differential) calculated in accordance with preceding paragraphs are not multiples of 50 cent, they shall be rounded up or down to the nearest 50 cent.