I move:
That Dáil Éireann approves the following Order in draft:
Civil Law (Miscellaneous Provisions) Act 2022 (Section 4(2)) (Scheme Termination Date) Order 2025,
a copy of which was laid in draft form before Dáil Éireann on the 6th March, 2025.
I thank the Members of Dáil Éireann for making time today to discuss this motion concerning the order I propose to make to extend the termination date of the financial contributions scheme for hosts of temporary protection beneficiaries from Ukraine known as the accommodation recognition payment, ARP, scheme. The extension of the scheme is the only item for consideration today.
The scheme was introduced in July 2022 in response to the outpouring of support from the Irish public, who opened their homes to provide shelter to Ukrainians seeking protection in Ireland. It involves a tax-free monthly payment of €800 per property used to accommodate beneficiaries of temporary protection, irrespective of whether the property is vacant or shared with the host. The rate, originally set at €400, was doubled to €800 from 1 December 2022, following a Government decision. This coincided with the offer a home scheme launched by the Minister for Housing and run by local authorities in conjunction with the Local Government Management Agency. That scheme has been invaluable in making homes, mainly holiday homes, available for beneficiaries of temporary protection. To date, there have been almost 3,400 properties allocated under the offer a home scheme to accommodate more than 10,340 beneficiaries. The ARP monthly rate is not linked to the costs incurred by the person providing accommodation. It is intended, rather, to recognise the valuable contribution of those who host beneficiaries. I acknowledge the absolute generosity of people who have pledged accommodation and who have opened their homes and hearts to displaced people from Ukraine. I also acknowledge the great work of the Irish Red Cross and its partners in matching beneficiaries to pledgers and in supporting them.
A 2024 report by the International Federation of Red Cross and Red Crescent Societies on private hosting arrangements for displaced Ukrainians in a number of European countries acknowledged the role of financial support packages, such as the ARP, in enabling the hosting period to extend. It should be noted that the ARP scheme does not apply where there is a rental agreement in place and it is not intended to substitute rent.
To date, almost €272 million has been paid to almost 23,000 applicants hosting over 52,000 beneficiaries. Some 37,600 Ukrainians are currently in over 20,000 properties under the scheme. There has been consistent growth in the scheme over time and that growth continues even though the future of the scheme has been uncertain. The scheme is due to end on 31 March 2025 but may be extended by ministerial order subject to Oireachtas approval.
As the temporary protection directive has been to extended March 2026, I propose to make an order to extend the scheme to mirror that extension and provide certainty to those living in hosted arrangements. This scheme is not only a means of recognising the part played by hosts. It has been instrumental in supporting Ukrainians to integrate within local communities nationwide. It has been pivotal in diverting Ukrainian individuals and families away from State-contracted accommodation, which is often in hotels and guesthouses. The scheme is also far more cost-effective for the Exchequer. The average cost of the accommodation recognition payment per person per night is €13, compared with an average of €45 in commercial self-catering accommodation.
The scheme has allowed the Department to move away from a total reliance on tourism and hospitality settings and has enabled us to consolidate our contracted accommodation portfolio. As numbers in hosted accommodation have increased, the numbers in State accommodation have contracted or fallen from a high of more than 58,600 at the end of 2023, to just over 25,800 at present. As a result, the number of beneficiaries in hosted accommodation now exceeds those in contracted accommodation.
I sincerely acknowledge the concerns expressed on the potential impact of the scheme on the private rental market. I accept that it is likely, particularly in some rural areas, that €800 per month tax free may have been more beneficial to an owner than to make the property available on the rental market. However, as those who attended the recent Irish Red Cross briefing in Leinster House will be aware, its survey found that the vast majority of hosts - 91% - are not landlords. They have never been registered with the RTB and they do not wish to become landlords. For many, their primary motivation has been solidarity with Ukraine. Rather than interfering with the rental market, the scheme has been responsible for introducing a stream of accommodation that would not otherwise have been available, a view expressed by a number of support organisations in recent submissions seeking an extension to the scheme. That being said, I am cognisant of Deputies' concerns and have recently met with Government colleagues to consider this scheme. Some of my current functions will shortly transfer to the Minister for Justice. I know he will continue to work as part of the whole-of-government response to the Ukraine war, with a focus on providing access to emergency temporary accommodation to those fleeing the Ukraine conflict who request it, in line with Government policy. The ARP scheme will be included in the transfer of functions. Should the scheme's extension be approved by the Oireachtas, further consideration will be given on operational improvements to the scheme. The future of the scheme will also need to be reviewed in the wider context of considering what comes after the temporary protection directive. While the scheme is not without issues, to not extend it would risk placing significant pressures on an already strained private rental market. The potential loss of hosted accommodation risks displacing some 37,000 beneficiaries, many of whom would be forced to compete in the private rental market. Humanitarian hosting, facilitated by the ARP scheme, represents a sustainable community driven response that is built on the principle of dignity. It goes beyond simply providing shelter and basic needs. It offers respect, compassion and a sense of belonging. I take this opportunity to acknowledge the huge wave of solidarity across the country in response to the war in Ukraine, and indeed in meeting accommodation needs of Ukrainians whether in commercial or hosted settings. In addition, local communities have actively supported families in integrating through access to employment and education.
With specific regard to today's proposal, Part 2 of the Civil Law (Miscellaneous Provisions) Act 2022 introduced the scheme with a termination date of 31 March 2023. That date reflected the duration of temporary protection under the 2001 Council directive. The directive has subsequently been extended a number of times, and each time the accommodation recognition payment has been extended to mirror these extensions. In a continued spirit of unity and support for the Ukrainian Government and its citizens, the European Commission has extended temporary protection until March 2026. I believe it is therefore appropriate to make an order to extend the accommodation recognition payment scheme termination date to the end of March 2026. Section 42 of the Civil Law (Miscellaneous Provisions) Act 2022 enables me to make such a change to a date considered appropriate following consultation with the Minister for Social Protection and the Minister for Public Expenditure, National Development Plan Delivery and Reform. I confirm to Dáil Éireann that I have undertaken those consultations and that both Ministers support the scheme extension. In wishing to extend the scheme, I was also mindful of the need to continue making provision for a financial contribution to assist in maintaining the availability of accommodation for beneficiaries of temporary protection. I want to be clear, however, that the order I propose today is only to extend the scheme as it is for a further year. It is only to extend the scheme and nothing else. I advise Members of this House that it is intended to reduce the monthly ARP from €800 to €600 from June 2025 with the first reduced amount payable in July. That decision has been made following consultation with, and agreement by, the relevant Ministers. Such a reduction seeks to address concerns voiced in the Oireachtas and in other forums on the possibility of a displacement effect ARP is having on the private rental market. It is also a means of winding down the scheme in an orderly and gradual way with due regard for all those involved. That matter will be taken forward by the Minister for Justice, following the transfer of functions. The Act of 2022 required a draft order to be laid before and approved by both Houses of the Oireachtas. Approval of today's motion in Dáil Éireann is essential to ensure the continuation of the scheme beyond March 2025. The motion will also be taken to the Seanad tomorrow. The accommodation recognition payment scheme has been an effective instrument of public policy which we cannot afford to abruptly lose. Approval of this motion today will provide certainty to all involved in hosting arrangements.