Colm Brophy (Dublin South West, Fine Gael)

I move:

That Dáil Éireann approves the following Order in draft: Civil Law (Miscellaneous Provisions) Act 2022 (Section 9(2)) (Amount of Financial Contribution) Order 2025, a copy of which was laid in draft form before Dáil Éireann on 14th May, 2025.

I thank the Members of Dáil Éireann for meeting to discuss this motion concerning the order the Minister for Justice, Deputy Jim O'Callaghan, proposes to make to reduce the monthly financial contribution for hosts of temporary protection beneficiaries from Ukraine under the accommodation recognition payment, ARP, scheme.

The Civil Law (Miscellaneous Provisions) Act 2022 provides that the draft order laid before the Houses of the Oireachtas cannot be made law until a resolution approving that order has been passed in each House. As announced in March this year, the draft order under consideration proposes a reduction in the monthly contribution from €800 to €600 from June 2025. The first reduced amount will be paid in July by the Department of Social Protection, which administers the scheme on behalf of the Minister for Justice.

My colleague, the Minister, Deputy Foley, has already sought and received the consent of the Minister for Social Protection and the Minister for Public Expenditure, NDP Delivery and Reform for the reduction, as required by law. She also consulted with me and the Minister for Justice on the matter, due to the pending transfer of responsibility for this matter to the Minister for Justice. When the scheme was introduced in 2022, the monthly contribution to hosts was €400.

It was not linked to the actual cost incurred by the person providing the accommodation and was a recognition of the humanitarian response to displaced Ukrainians. The contribution was increased to €800 from 1 December 2022 to coincide with the introduction of the local authorities' offer a home scheme for Ukrainians. Harnessing the many generous offers of accommodation pledged by the public and increasing the financial support available to hosts was seen as important in addressing accommodation challenges due to the continuing arrival of Ukrainians into the State. Pledged accommodation, whether spare rooms in people's houses through Irish Red Cross pledges or vacant homes through the offer a home scheme, were of significant value to the State in the humanitarian response to the Ukrainian crisis. I thank the Irish Red Cross and its partners for their ongoing engagement with hosts, beneficiaries of temporary protection and communities in implementing the Ukraine response pledged accommodation programme.

From the launch of the ARP scheme in July 2022 to date, some 23,900 hosts have availed of the ARP contribution in respect of some 54,500 beneficiaries. In March this year, when the extension of the ARP scheme was being considered in this House, many Members of the House reflected on the many positive aspects of the scheme. They acknowledged it as an innovative measure which has generated emergency accommodation out of largely unused housing stock. The scheme tapped into the goodwill of thousands of households and provided an economically and socially viable alternative to accommodation in the tourism sector. Under the scheme, Ukrainians have had access to accommodation that is more suitable for families, and that is a path towards independent living. The scheme has been a lifeline for displaced Ukrainians, given high rental market rates and scarcity of rental accommodation and has contributed to a shift away from a reliance on State-procured accommodation in hotels and guesthouses. On 18 May this year, more than 38,700 people were being housed under the scheme. This now exceeds the number in State-procured accommodation, which is some 24,100.

Notwithstanding the success of the scheme, it is now timely to reduce the level of the financial contribution under the ARP. I also acknowledge the concerns that were raised by Deputies in this House in March regarding the potential impact of the scheme on the private rental market, and note the amendment that Deputy Carthy intends to table today. I will address this matter later in the session. The reduction seeks to mitigate any unintended impact of the ARP on the private rental sector. While there are no definitive findings of any impact, I am mindful of the concerns expressed by Oireachtas colleagues and hope that the reduction will go some way towards alleviating those concerns.

My Department has shared ARP data for analysis undertaken on behalf of the Department of housing and it has been difficult to reach any definitive conclusion on the matter, in part due to the provisions of the scheme. For example, a property that is registered with the Residential Tenancies Board might also fall within the remit of the ARP as a tenant may apply for the ARP subject to the consent of the property owner and other tenants. There are also likely to be cases of RTB property registrations which were terminated for a range of reasons, such as the sale of property or change of use, in respect of which an applicant is in receipt of the accommodation recognition payment.

While there have been concerns about the scheme's possible negative impact, the results of the Irish Red Cross research of ARP hosts cannot be ignored. That research found that over 90% of hosts are not landlords, and that their primary motivation for involvement has been supporting people fleeing the war in Ukraine. The proposed reduced contribution reflects recent policy changes which aim to ensure that temporary and timebound supports for beneficiaries of temporary protection are proportionate and equitable. Our policies are continuing to evolve as we transition from a crisis to a more measured, standardised and sustainable response. Last year, for example, the 90-day State accommodation policy was introduced and the rate of payments to beneficiaries in designated accommodation centres was reduced. Those policies resulted in a significant reduction in the number of beneficiaries arriving in Ireland and reduced numbers in State-procured accommodation.

I know that there are conflicting views on the impact of reducing the rate. There are those who see the current monthly tax-free contribution of €800 as outcompeting local renters. There are those who are concerned that the reduced rate will place a burden on hosts and that they will not be able to cover the cost of housing. The contribution is not, nor has it ever been, linked to the actual costs incurred by the person providing accommodation. It is not intended to substitute rent. It is not available where there is a rental agreement in place. With regard to so called top-up payments, the ARP does not create any obligation for the beneficiaries in the accommodation, such as payment of rent or provision of services. However, a beneficiary may agree to contribute towards certain household costs such as utilities.

A concern related to the proposed reduction is that beneficiaries may lose their accommodation and become vulnerable to homelessness. There may be a risk associated with reducing the contribution and it is impossible to predict ARP applicant attrition rates. In that regard, although the reduction has been flagged for some months, the number of ARP applications has continued to increase. Should hosting arrangements end, and they can end for a range of reasons, beneficiaries who may require support will be provided with that support. Of course, it should be recognised that there will be others already in employment and settled in local communities who will seek to make their own arrangements, as many of their compatriots have already done.

A monthly contribution of €600 tax free is still an attractive payment and is the equivalent of a normal rental property of over €1,000 per month, as most landlords pay 50% tax on rental payments. Since 2022, a number of European countries have introduced financial support schemes for private hosts for displaced persons from Ukraine. Most of those schemes' rates have been reduced, while others have been discontinued. Even after the proposed reduction, the accommodation recognition payment scheme is at the generous end of such schemes, both in the duration for applicants and the level of contribution. I hope that by continuing the scheme at a reduced rate, we can achieve a balance between the needs of displaced people, the hosts who have extended a warm welcome to them and the wider community. The House's approval of this motion today will endorse that approach.

See this speech in context