Inexcusable for government to extend Ukrainian APR payment without analysis of impact on rental sector – Matt Carthy TD

The government has acknowledged that they have not sought or received any reports or analysis on impacts that the accommodation recognition payment may be having on the private rental sector. That is despite the fact that they plan to extend the scheme this week.

Sinn Féin spokesperson on Justice, Home Affairs and Migration, Matt Carthy TD, received the confirmation in a response by Minister Norma Foley to a Parliamentary Question. He said it is unacceptable that the government plans to extend the ARP despite the inherent unfairness within the scheme and the obvious distorting within the rental sector that it is causing.

Deputy Carthy said that Sinn Féin will submit an amendment to the government’s motion demanding that the scheme only be extended for those Ukrainians who satisfy a means test, limit new applicants to those who house recipients in their own homes; and bans the practise of ‘top-up’ payments.

Teachta Carthy said:

“There is a serious issue of unfairness with Ukrainian Accommodation Recognition Payment (ARP) and the impact that it is having on the private rental sector. There seems to be absolutely no recognition from the government about this problem.

“The government, through a Parliamentary Question response from Minister Norma Foley, has confirmed that they have not even sought briefings, reports or analysis on the impact of the ARP on the rental sector. This is reckless. It is also farcical that the Minister, having confirmed that she has not sought any of this crucial information, then suggests that the ARP is not interfering with the rental market. This is at odds with what we are hearing in communities across the state who are telling us that the scheme is distorting the rental sector and that the government is turning a blind eye to it.

“The problem with this scheme is clear. The state will pay a landlord €800 tax free to accommodate a person from the Ukraine here under the Temporary Protection Directive. That Ukrainian person could be employed in a well-paid job – there is no means-test as is the case for other housing assistant payments. The scheme also allows for ‘top-up’ payments which means that the mooted reduction of the payment to €600 will not address the problem.

“This puts other renters, including people who might be on lower incomes, at a severe disadvantage as this scheme incentivises landlords to rent their properties to Ukrainians, particularly in areas with traditionally lower rents. It is divisive, deeply unfair and must be ended for new entrants. It should also be means tested as other housing supports would be and the practice of permitting top up payments should be banned.

“While at the beginning this scheme was an emergency measure to support those who opened up their own homes to people fleeing war, what we are seeing is increasingly landlords in the private rented sector availing of the ARP because in some areas it is financially advantageous to them compared to renting to other potential tenants.

“The government must change tact immediately. Sinn Féin will submit an amendment to the government’s motion this week which demands that the scheme only be extended for those Ukrainians who satisfy a means test, limits new applicants to those who house recipients in their own homes; and bans the practise of ‘top-up’ payments.”