Payment for vacant properties donated to Ukrainian refugees set to increase substantially

Current payment of €400 per month could rise to €700 due to sharp rise in energy prices

People who donate second properties to refugees fleeing the war in Ukraine are expected to get a substantial increase in the monthly payment from the Government.

Taoiseach Micheál Martin confirmed the monthly payment of €400 would be increased to reflect increase in prices, particularly in the cost of energy.

While Mr Martin did not specify the exact amount that would be paid in the future, it is understood that the monthly payment could be in the region of €700 – a 75 per cent increase. It is understood that senior figures in Government believe the higher rate of payment could encourage more families to donate vacant properties, or holiday homes, over the winter months.

“The payment was never meant to cover all the costs,” Mr Martin told reporters during a visit to Bray, Co Wicklow. “It was a recognition payment for those who have generously made their housing available for Ukrainians. That is being looked at by the Department of Children and there’s an expectation it will be increased there.

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“One has to take into account the increase in energy prices and that has an impact too on those who have been good enough to provide their house.”

Asked if it would form part of the budget later this month, he said it was an issue that was being independently looked at.

The Government agreed in May to introduce a monthly accommodation recognition payment of €400 to hosts per property where Ukrainians are living.

The payment is a recognition of the generosity of people who have made accommodation available to victims of a humanitarian crisis, and it is linked to a minimum hosting commitment of six months.

Mr Martin would not be drawn when asked about the overall amount that will be available for the cost-of-living package. Asked to respond to comments by Tánaiste Leo Varadkar that it would be a multibillion package, Mr Martin said he would “not get into specifics” at this stage.

He said there would be a budgetary surplus and a proportion of that would be allocated towards alleviating the pressures facing households and businesses.

“Everybody is affected so there has to be a variety of support at different levels. Clearly those in the lowest income [brackets] are the most affected and we have to protect those from energy poverty.

“There will be a number of mechanisms through the social protection network. There are tools we used on the last occasion such as the energy credit for example [that involved a €200 credit on household energy bills].

He said there would be a wide number of measures that would help a broad range of people and businesses.

He did warn that the energy crisis may be more protracted than initially thought.

“No one has an exact timeline [on how long it lasts] and I’m looking at it in a more medium-term framework,” he said. “We have to be mindful of the fact that we can do once-off measures for 2022. I’m also conscious of 2023 and the impact the crisis will have on households.”

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times