The cost of providing accommodation for people fleeing the war in Ukraine has reduced by more than half since 2024, according to the Department of Justice.
In an opening statement submitted in advance of a Dáil Public Accounts Committee hearing on Thursday, department secretary general Oonagh McPhillips says the State was providing accommodation directly for about 60,000 Ukrainian people at the peak, with more living in properties offered by hosts in return for a Government payment.
However, she is expected to tell the committee there has been a gradual decrease in demand with a corresponding fall in costs since 2024.
In the opening statement, McPhillips notes an allocation of €1.429 billion was provided for such accommodation in 2024, which at that point was the responsibility of the Department of Children.
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This allocation was subsequently reduced to €1.226 billion when the department’s supplementary estimate was published later that year.
“By the end of the year, the ultimate out-turn for 2024 was further reduced to €1.165 billion, an overall reduction of €264 million on the original allocation,” the statement notes.
McPhillips is expected to suggest that savings in this area could primarily be attributed to reduced demand for accommodation from commercial providers, which enabled a consolidation of the number of sites contracted by the department.
“This included proactive measures such as contract terminations, and rate and vacancy reductions which continue to deliver cost savings.”
The opening statement notes that when responsibility was given over to the Department of Justice in May of last year, funding of €738 million was allocated.
“Since then the costs have further reduced, bringing the allocation to €727 million in the supplementary estimate (for the department). The provisional out-turn for 2025 was €719 million and a provision of €607 million has been made in respect of Ukraine accommodation this year,” McPhillips says in the statement.
“This still represents a very considerable cost in terms of public money, though reducing as I have outlined. The committee will be aware that, combined with the over 33,000 residents currently supported by the International Protection Accommodation Service (IPAS), and ongoing housing shortages across society, there remains great pressure on accommodation services in the State at this time.”
The secretary general’s statement also notes that under the Government’s separate accommodation recognition payment scheme – which provides €600 per month for properties used to house people fleeing the Ukraine conflict – about 63,000 people had been supported since 2022.
“Approximately 42,000 people are currently living in almost 23,500 hosted arrangements with the support of the scheme. The accommodation recognition payment scheme is currently in place until 31 March 2026 but may be extended by ministerial order in accordance with the governing legislation.”
