Hostels hosting Ukrainian refugees have quadrupled since the start of 2023

The number of individuals hosting Ukrainian refugees has quadrupled, from just over 4,000 at the start of last year to more than 16,000 today, with costs rising to €13 million per month .

Concerns have been raised this week that the ARP, amounting to €800 per month excluding tax for hosts, is reducing the supply of rental accommodation, particularly in areas where rents are generally below €1,600 per month.

The growing number of Ukrainian households housed under the program comes as the Ministry of Children and Absorption, which runs it, is simultaneously working to reduce its contracts with hotels to accommodate Ukrainians.

At the same time, it is under increasing pressure to find accommodation for asylum seekers.

Data provided to the Irish Times shows approvals for the ARP have increased by an average of 691 per month this year, taking the total from 4,244 in January 2023 to 10,198 in January 2024, then to 16,297 by September 22 .

This total means that the ARP now costs €13,037,600 per month, or €156,451,200 per year.

This payment was introduced in 2022 to encourage individuals to accommodate Ukrainian refugees in their own home or in a second or third residence, at a rate of €400 per month. In December 2022, the payment was increased to €800.

It is administered by the Department of Social Protection on behalf of the Department of Children.

Payment is made directly to the host and does not prevent the owner from requesting an additional contribution from their Ukrainian guests.

While income from the room rental scheme, through which an owner can earn up to €14,000 per year for renting a room in their home, is also tax exempt, rental income when an owner renting an entire property to a tenant is taxed up to 52 percent.

Sinn Féin finance spokesperson Pearse Doherty called in the Dáil on Wednesday for the ARP program to be reviewed, saying it gave an advantage to Ukrainian housing seekers.

“As the Minister (of Children and Integration, Roderic O’Gorman) knows, the program provides for rent of 800 euros per month for Ukrainians, whether they work or not. The payment is tax-free, meaning it is worth €1,600 to an owner. In constituencies like mine in Donegal, where the average rent is less than €1,600, this excludes other tenants from the market and reduces supply.

“This goes against the government’s commitment and assurances that any measure to temporarily accommodate Ukrainians would not have an impact on housing supply,” he said on Wednesday. .

Mr O’Gorman said more than 100,000 Ukrainians had sought refuge in Ireland since the Russian invasion of their country in February 2022. They were granted refugee status under the European Union’s Temporary Protection Directive, he added.

“The recognition payment has been very important in supporting the promised homes and the local authority housing programme. This allowed us to no longer rely entirely on hotel and guesthouse accommodation, as we discussed earlier in our answer.

“It also allowed Ukrainians to integrate into communities. Sometimes they get entire houses and sometimes shared rooms within an individual’s house. The payment helped people do that and meet their costs,” Mr O’Gorman said.

Ministry of Children figures show the cost of the program rose from €3.3 million per month (€39.6 million per year) in January 2023 to €8.1 million per month (97 million euros per year) in January 2024, to now reach more than 155 million euros per year.

Asked if the rate of 800 euros per month could be reduced, a ministry spokesperson said this was “not under consideration at the moment”.

“It is linked to the (EU) Temporary Protection Directive and is currently extended until March 2025,” he said.