The Irish government is receiving criticism in response to reports that it has underspent €1 billion on housing. The revelation comes at a time when the country is facing a severe housing crisis, with rising homelessness and an increasing number of individuals and families struggling to find affordable accommodation. Many are now demanding that action be taken to address the issue, and are questioning why the government has not utilized the allocated funds for housing. In this article, we will examine the causes and consequences of this underspend, as well as the response of various stakeholders to the crisis.
The Irish Government has faced criticism for underspending its capital budget on social and affordable housing, with more than €1 billion left unspent between 2020 and 2022. Sinn Féin’s Eoin Ó Broin obtained figures through a series of parliamentary questions, which showed that €1.52 billion of the Department of Housing’s capital budget had not been used, including over €1 billion intended for housing. Ó Broin claimed that the underspend was contributing to homelessness and increasing demand for housing in the country. He attributed the overspend to “red tape” and criticised the Minister for Housing, accusing him of being “incompetent”.
The Department of Housing cited Covid-19 shutdowns in 2021 as one reason for the underspend, although Ó Broin argued that the problem persisted into 2023, and the trend had continued with a 29% capital underspend in the department over the first three months of 2023.
The representative organisation for approved housing bodies (AHBs), the Irish Council for Social Housing (ICSH), called the underspend “not surprising”, citing the 13-week construction sector lockdown in 2021 and other issues relating to Brexit-related supply obstacles, price increases, workforce issues, and the wider economic viability of homes.
Dr Donal McManus, CEO of the ICSH, noted that with a review of funding and approval processes, it would be possible to deliver units that had stalled in the AHB sector. McManus also welcomed the recent decision to discontinue limiting the Payment and Availability Agreement to a percentage of local market rent, saying it was a “key measure” that would ensure the viability of hundreds of homes in both urban and rural communities. The ICSH said that it was in communication with the department to streamline funding and approval processes under a range of schemes, and McManus emphasised that there was a “strong pipeline” in the AHB sector that could deliver for both social housing and cost rental.
