As a result of a new policy on assessing household rents, larger families are struggling to meet the new levels imposed by South Dublin County Council said Sinn Féin councillor William Carey.
Carey noted that the council’s new rent differential policy will see costs for one family rise €70 to €236 per week.
With the additional surcharge being added of €147 it has now risen to a total of €383 per week, marking a 62.3% increase in rent when by law, prices in rent pressure zones are limited to 2%.
Carey put the price rise at the feet of the Fianna Fáil – Fine Gael led council that was in power from 2019 to 2024 and was subsequently re-elected in June; this specific measure was introduced on April 1st 2021.
“The effects of the scheme are only now beginning to hit home with tenants whose children are now entering the workforce,” Carey said.
“These assessments are beginning to cause huge stress on families struggling to pay these additional costs.”
He explained “the differential rent scheme has always meant that as family income rose so to would the rent they pay. Rents are assessed on all income going into the home. However, the new policy is aimed at adding a surcharge of an additional 10% of income to be levied upon families. This policy has meant that families whose income had grown above qualification base lines would be hit with an additional 10% surcharge. In effect all income brought in by adult children in a household is now subject to a 20% differential rent. This is a doubling of the rent that they would reasonably be expected to contribute to the family home.”
He said the rates are “exorbitant” even in the private sector.
“A family with 5 adults and additional children in the home could be paying such levels of rent to the local authority,” he said.
“In November 2020, at the height of the Covid pandemic, Fianna Fail and Fine Gael pushed through these changes in SDCC rent differential scheme. This resulted in what is seen as punitive charges being levied upon families with adult children living at home. This also includes charges upon those teenagers and youth who take up part time jobs to support themselves as they progress through school.”
The measure was agreed during the 2020 annual budget, which Carey objected to at the time.
Rental income has increased from €26m to €31.2m per year which Carey believes should be passed onto families instead.
“I identified the problems that this policy would raise including the unfairness of it and pointed to the unjust nature of the additional charges being levied. I also made clear that the increase would have a detrimental effect on family dynamics and that these increases would land on the shoulders of some of our lowest paid workers, ie, young worker’s entering into the jobs market.”
At the 2020 budget meeting, Carey put forward a measure on the topic but it was rejected by 23 votes to 14.
The Fianna Fáil/Fine Gael coalition, which was supported by the Greens and Labour, voted down the motion.