Working families ‘too wealthy to be on the housing list and too poor to get a mortgage’

By Simon Bourke, Wexford People

The chair of Wexford County Council (WCC) has called upon the department of housing to provide further assistance to families who find themselves in a “classic income trap”. Having spoken to a number of his constituents in the Gorey Kilmuckridge Municipal District (GKMD), Councillor Joe Sullivan said the current income thresholds mean working families in Co Wexford are effectively “too wealthy to be on the housing list and too poor to get a mortgage”.

In order to be eligible for social housing in Co Wexford, a family of two adults and three children must be earning no more than €39,375 annually, a system which Cllr Sullivan said is not “fit for purpose”.

“While I do agree that the department of housing has to keep tight constraints on income thresholds and not allow a situation to develop where the system is overwhelmed by housing applicants, the current income bands are not fit for purpose. The guillotine-style effect of enforcing these thresholds is too severe with officials not giving any discretion to allow people onto the housing list who are slightly over the limit.”

Suggesting that an appeals system be put in place for those who are a certain percentage over the threshold, Cllr Sullivan said he is fearful of a situation developing where “people are penalised by the system for attempting to do their best for themselves and their families”.

Outlining how the thresholds are impacting ordinary working people across Wexford, the councillor provided three examples of ways in which people are being hampered by an unfair system.

“Think of an adult with one child who is in full-time employment, she is currently €1,800 over the threshold of €35,875 and and has a 132km round trip to work each day. She enjoys her work and no similar work is available in her immediate home area. The €1,800 she is over the threshold is spent in petrol for her car, and the only way to get under the threshold is to cut her work hours, which is counter productive in my opinion.

“Then there’s an adult with two children who works in the healthcare sector and was previously on the social housing list. But, having worked a lot of overtime during the pandemic, she was removed from the list and the only way for her to get back on there is to work less hours.

"Lastly, you have a couple with four children, all of whom are under ten-years-old. The mother stays at home raising the children while the father is working in a low-income job. They live in rented accommodation and receive housing assistance payment (HAP) and are finding it extremely difficult to make ends meet. The father is willing and able to work extra hours but he cannot as this would put him over the income threshold, again they are caught in an income trap.”

Complicating the issue further says Cllr Sullivan, is the rate of inflation and how it is not being factored into the current thresholds.

“I have checked the figures since the income thresholds were last increased in January 2023 and inflation is running at approximately 9.2 pc over the period January 2023 to December 2025,” he said.

Asking that the department of housing adjust the figures accordingly, Cllr Sullivan notes that, with inflation, the current threshold for a family of five would rise from €39,375 to €42,997, an increase of €3,662.

"If there was a slight adjustment of the income thresholds and the criteria around them it would allow people to provide a better lifestyle for themselves and their families,” he said. “This situation is weighing heavily on the minds of people and causing mental health issues. I would call on the department to consider doing one of two things: raise income thresholds for social housing annually in accordance with inflation, or create an appeals procedure whereby applicants who are €2,000 or less over the threshold can appeal to an independent office outlining their circumstances.”

Acknowledging the work being done by WCC’s housing section and by Minister James Browne, Cllr Sullivan said his proposals were a result of discussions with a “sector of people whom I interact with on a daily basis and whom I believe need to have their voice heard”.