State Spend on IP Applicants and Ukrainians Drops by €104 Million in Q1
The State's spending on commercial accommodation for International Protection applicants and Ukrainians fell by €104 million in Q1 2024 to €300 million, a 26% decrease from last year. This reduction is largely due to a 54% drop in costs for Ukrainians following new government policies. Several firms, including Cape Wrath UC, continue to receive millions for providing accommodation.
The State's expenditure on commercial providers for accommodating International Protection (IP) applicants and Ukrainians decreased by €104 million in the first quarter of this year compared to the same period last year. The combined spend for January 1 to March 31, 2024, was €300 million, down 26% from €404.23 million in the corresponding period of 2023.
The most significant reduction was in accommodation costs for Ukrainians, which more than halved. The bill for Ukrainians from commercial providers was €61.42 million, a 54% (€73.32 million) drop from €131.74 million last year. This follows a new government policy from November requiring new Ukrainian arrivals to be accommodated in Designated Accommodation Centres (DACs) for a maximum of 30 days. The Cabinet also agreed that most of the 16,000 Ukrainians in State-contracted commercial accommodation will need to find alternative homes by March 2027, with phased introductions from August, though vulnerable individuals can remain.
Accommodation for IP applicants cost €239.12 million in the first three months, an 11% (€30.37 million) decrease from €269.49 million last year. The State currently accommodates over 33,000 IP applicants, including over 9,000 children, across more than 300 centers. Minister for Justice Jim O'Callaghan confirmed 562 High Court judicial reviews by IP applicants against International Protection Appeals Tribunal (IPAT) decisions.
Several firms continue to earn millions. Cape Wrath UC, managing the Citywest property for the State after its sale, received €11.16 million for accommodating IP applicants in Q1. Other top earners include Mosney UC (€9.6 million), Holiday Inn Dublin Airport Skyline View Ltd (€8.4 million), Guestford Ltd (Moran Red Cow hotel operator, €7.75 million), AllPro Security Services Ltd (€6.6 million), and Bridgestock Care Ltd (€8.5 million for IP applicants and Ukrainians).