The legislation will give effect to three important elements of the Government's housing policy:
• Provide a legislative basis for the new Housing Assistance Payment (HAP)
• Introduce a new tenant purchase scheme for local authority tenants
• Reform the process for the termination of local authority tenancies.
The text of the Bill will be published in the coming days.
Speaking following the Cabinet meeting, Minister O'Sullivan said: "This important housing legislation will bring about the most radical reform of public housing support in decades.
"It has long been accepted that the current rent supplement system isn't fit for purpose. This Government is the first to actually change it. The new Housing Assistance Payment will be better for tenants, better for landlords, better for local authorities and introduce a more coherent and joined-up system of housing support."
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The main features of the new Housing Assistance Payment are:
• It will ensure that all long-term housing support lies with local authorities
• It enables people take up full-time employment and maintain housing support
• It will help ensure that all accommodation in the private rented sector is to standard and that landlords are tax compliant.
To access the HAP scheme, a household will complete a social housing assessment by the local authority. Once the household has secured appropriate accommodation in the private rented sector, the local authority will pay the landlord directly, with a contribution by the household paid directly to the local authority. For households dependent on social welfare payments this contribution will be made through deduction at source.
As household contribution will be linked to the differential rent schemes operated by local authorities household income can increase through the take up of employment and the family will still be in a position to receive housing support while paying an appropriate rent contribution.
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