Differential rent scheme

Scope of scheme

1. The rent of a dwelling let on differential rent will be calculated as 17% of the principal earner's weekly assessable income which exceeds €40.00 together with a contribution from any subsidiary earners in the household with an allowance for dependent children. In determining rent in the case of a new or a transferred tenancy, assessable income should be reckoned by reference to the income situation of the family as at the date of commencement of tenancy.
2. Assessable income of the principal earner (and subsidiary earner(s) where applicable) is the income from the following sources, assessed in full, but reduced by PRSI, USC and any income tax payable, on such income
1. income from employment including self-employment
2. all social insurance and social welfare payments & allowances, excluding payments listed at (vi) beneath
3. Pension related deductions, superannuation, pension fund payments or any other deductions apart from income tax, PRSI & USC payments are not deductible from a person's normal weekly wage for the purposes of calculating rent.
4. 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. In the absence of certified accounts/notice of assessment tenants who are self-employed may be assessed on a minimum net income of €500.00 per week.
5. Maintenance payments received.
6. Income from Rent a Room Scheme.
3. Income of any employed person is, in general, the normal weekly rate of remuneration including regular payments such as overtime, bonuses and commission.
4. 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
5. Subsidiary earner is a member of the household, other than the principal earner who has an income.
6. Income from the following sources is disregarded for rent calculation purposes:-
   1. Children's allowance
   2. Scholarships and students grants
   3. Boarding-out payments
   4. Domiciliary care allowance
   5. Lump sum compensation payments
   6. Fuel Allowance and Living Alone Allowance
   7. Blind Welfare Allowance
   8. Foster Care Allowance
   9. Back to School Clothing & Footwear Allowance
   10. Exceptional Needs Payment
7. Additional income, above standard social welfare rates, from Community Employment Schemes and Back to Work Schemes is disregarded for rent calculation purposes.

Tenants in receipt of income from the above sources will have their rent calculated using standard social welfare rates.

Calculation of rent

Differential rents will be calculated as follows:

The first €40 of the principal earners assessable income will be disregarded in all cases. All assessable income over €40 will be calculated as 17% of the principal earners weekly assessable income.

In addition to the €40 allowance for principal earners, an allowance should be deducted for dependent children on the basis of >€7.00 per week for each child of 16 years or under, or who being under 21 years and is attending a full-time course of education and is wholly or mainly maintained by the principal earner. Note documentary evidence must be submitted from the educational institution.

Couples with separate social welfare claims, excluding old age pensions, shall have their rent determined on the basis of a joint social welfare claim.

The minimum assessable income for rent calculation purposes shall be the standard social welfare rate.

Calculation of rent for HAP tenants shall be in accordance with the criteria outlined above, however where a top up payment to a private landlord is made the differential rent may be reduced.

Special discounts

A €15.00 discount will be awarded to all household members over 60 years and is to be deducted from their assessable income prior to calculation of rent payable. A further discount of €10.00 is to be awarded to tenants over 80 years. This allowance should be applied to each tenant as applicable.

Subsidiary earners

After the rent payable by the principal earner has been determined, 10% of each subsidiary earner 's income shall be added, except for those under 25 years on a reduced rate of social welfare who shall be liable to pay €5.

Rent review/income details not submitted

Where a rent review form and/or adequate income/household details are not submitted in response to a request from Clare County Council, a penalty of €50 will be added to the current weekly rent until such time that the rent review form/income details are submitted in full. This penalty is non-refundable.

Minimum rent

The minimum weekly rent of any dwelling shall be €30.00.

Serviced bay

A fixed weekly charge of €20.00 will apply.

Hardship clause

In exceptional circumstances where payment of a rent calculated in accordance with this scheme would, in the opinion of the Local Authority, give rise to hardship, the Local Authority may agree to accept a lesser sum from a tenant for a specified period.

Review of income

The tenant must notify the local authority immediately of any change in income or in family composition, which may affect the rent calculation and it is the responsibility of the Tenant to provide accurate information in relation to income when requested to do so.

Rounding up and down

Rents calculated in accordance with this scheme will be rounded up or down to the nearest 50c.

Additional charges

A €3 per week waste management charge applies to all complexes where there is a communal bin service or where refuse collection is paid for through a property management company.

HAP, RAS and social leasing

This Differential Rent Scheme also applies to the Housing Assistance Payment (HAP) Scheme, Rental Accommodation Scheme (RAS) and Social Leasing Scheme.