The quantity of private homeowners providing shelter to Ukrainian refugees has seen a 400% surge since the beginning of the previous year, escalating from slightly over 4,000 initially to exceeding 16,000 currently. This increase in hosting responsibilities correlates with a rise in expenses, now amounting to €13 million per month.
This week has seen emerging worries that the award of €800 tax-free per month as part of the Accommodation Recognition Payment (ARP) provided to these hosts could decrease the availability of rental properties. This issue is particularly concerning in areas where the usual rent is less than €1,600 monthly.
Further to this, the increase in the quantity of Ukrainian families benefitting from this scheme corresponds with the Department of Children and Integration’s move to lessen their contractual obligations with hotels that are housing Ukrainians. The Department, which is in charge of this programme, is concurrently under increasing strain to find housing for individuals seeking asylum.
The total expenditure under the ARP initiative equates to over €13 million per month or more than €156 million annually. The ARP, first introduced in 2022 to incentivise private homeowners to shelter Ukrainian refugees in their residences or vacation homes, initially offered €400 per month. However, as of December 2022, this sum was increased to €800.
Managed by the Department of Social Protection on behalf of the Department of Children, these payments are given directly to the hosting party, not preventing homeowners from seeking additional contributions from their Ukrainian guests. Whereas the rent-a-room scheme, which allows a homeowner to receive a tax-free income of up to €14,000 per annum for renting out a room in their home, landlords who lease out an entire property to a tenant face a tax rate of up to 52%.
On Wednesday, Sinn Féin’s finance spokesman, Pearse Doherty, petitioned in the Dáil for a review of the ARP scheme, arguing that it provides a distinct advantage to Ukrainians seeking accommodation.
As reported by the Minister for Children and Integration, Roderic O’Gorman, a programme is in place providing Ukrainians with a sum of €800 monthly for rent, despite their employment status. The benefit is exempt from taxation, equivalent to €1,600 for property landlords. This has led to an uptick in rental costs in areas such as Donegal where the average rate is under €1,600, consequently reducing the availability of houses for tenants.
O’Gorman was criticised for going against the government’s pledge that temporary arrangements for Ukrainian accommodation wouldn’t affect housing resources. More than 100,000 Ukrainians have sought refuge in Ireland post the Russian atrocities in their homeland in February 2022. These individuals have been granted refugee status as per the European Union temporary protection directive
O’Gorman voiced that the acknowledgement payment played a crucial role in supporting pledged local authority accommodation and relieving dependency on hotels and guest houses during the initial phase of response. This system enabled Ukrainians to integrate into local communities either through independent housing or shared residences while also covering their costs.
Nevertheless, the yearly cost of the scheme according to the Department of Children’s data has surged from €39.6 million ( €3.3 million monthly ) in January 2023 to €97 million ( €8.1 million monthly ) in January 2024 and continues to increase, surpassing €155 million annually.
When enquired whether the €800 monthly rate may be lowered, the department’s spokesperson stated that it’s presently not being considered for revision. The scheme is tied to the EU’s temporary protection directive and is extended up until March 2025, he added.