The Government must urgently increase the income thresholds for local authority housing to ensure that modest increases in social welfare payments do not leave vulnerable households worse off.
Budget 2027 provides for a €10 weekly increase in core social welfare payments, equivalent to €520 over a full year. While this increase is welcome, there are serious concerns that its benefit could be undermined by outdated social housing income limits and rising living costs.
The Taoiseach Mr Micheál Martin, has confirmed that the Minister for Housing is reviewing the income thresholds for local authority housing and is actively considering increases.
The Minister for Housing, Mr James Browne, has also acknowledged that existing limits need to rise, recognising that increases in wages and social protection payments have created additional difficulties for households seeking social housing.
The problem is that social housing income limits have not increased since January 2023.
As a result, some households receiving modest increases in wages or assessable social welfare payments could find themselves exceeding the income threshold for social housing, despite being no better able to afford private rents or purchase a home.
Those already receiving housing assistance may also see some of their increase absorbed through higher income-related rent contributions, depending on their local authority’s rent scheme.
It makes little sense to give people an extra €10 per week in one Government department, while outdated income thresholds and housing charges risk taking away part of the benefit elsewhere.
The current basic annual net income limits for social housing remain at €30,000, €35,000 and €40,000, depending on the local authority, with additional allowances applying to certain households.
These thresholds must reflect today’s wages, social welfare payments, housing costs and the reality facing low-income families, pensioners and people with disabilities.
The Government should act without further delay by:
- Increasing social housing income eligibility thresholds.
- Protecting households from losing housing eligibility, because of very modest payment increases.
- Reviewing how social welfare increases affect differential rents.
- Introducing regular reviews of housing income limits, to reflect the cost of living.
A €10 weekly social welfare increase should improve people’s lives, not create another financial or housing difficulty. The review is welcome, but what is needed now is a clear decision, a timetable and meaningful increases in the income thresholds.
People need action, not another prolonged review.
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