Focus Ireland says Budget 2027 clearly shows homelessness is an afterthought for Government despite first mention of 'homelessness' for 3 years

Focus Ireland said that while it is welcome that homelessness was acknowledged in this year’s Budget, the measures announced fall far short of what is needed to address the crisis. The charity noted that, over the period since homelessness was last referenced in a Budget speech, the number of children experiencing homelessness has risen by almost 50%, from 3,991 in October 2023 to 5,830 today, an increase of 1,839 children (46%).

Mike Allen, Director of Advocacy at Focus Ireland said: “In such a massive give-away budget there are some things to welcome, but the overall conclusion is that the Government has decided that homelessness is something it has no answers for.”

He adds: “this budget shows that groups that make the biggest noise receive the greatest attention, but families experiencing homelessness are focused on finding stability and caring for their children. Unfortunately, this has resulted in Government apparently forgetting people who are homeless and, in the midst of a massive budget give-away, offering so little to help them escape homelessness. That is why Focus Ireland will continue to speak out on their behalf and why Government must listen and act. With the right policies and resources, homelessness can be tackled.”

“This was a good budget for people on €100,000 a year with spare money to put into savings, but for a family on €35,000 struggling to avoid homelessness or to hang onto a job while homeless, it offers very little help at all.”

“Minister Harris said this Budget supports a path centred on people, but that will ring hollow for the more than 5,800 children still living in emergency accommodation. A truly people-centred Budget would have taken meaningful action to prevent more families from being pushed into homelessness.”

Lack of HAP Support

People working to tackle homelessness were waiting for news on two important issues which we were told were ‘budget-dependent’ – the long-awaited indexing of the Housing Assistance Payment (HAP) and the publication of a new Child and Family Homeless Action Plan. Unfortunately, neither of these initiatives were important enough for Government to provide detail in their speeches and we will have to await publication of further details before we can understand if there are any implications from the budget.

Focus Ireland also said that the failure to adequately increase HAP rates risks pushing more households into homelessness as rents continue to outpace available supports.

Mr Allen said: “It is now ten years since HAP rates were last increased, while average rents have risen by 75% over the same period. For many families, that means finding almost €900 extra each month from already stretched incomes. Without meaningful action for the 55,000 households relying on HAP, more families will inevitably be pushed into homelessness.”

Child and Family Homeless Action Plan

The organisation welcomed the Minister’s reported assurance of funding for the repeatedly postponed Child and Family Homeless Action Plan which requires investment to make a meaningful difference for families at risk. (Assurances not in the delivered speech)

“It is disappointing that the actual funding level was not announced. Without sustained investment in prevention and family supports, we will continue to see families entering homelessness when that outcome could and should have been prevented. The Government must now move urgently to address these gaps and ensure homelessness prevention is treated as a national priority.”

Failure to meet social housing targets

The statement that 11,250 social homes will be constructed in 2027 is in line with existing promises, but the failure of Government to meet its construction targets in any year since 2018 was not addressed, leaving little confidence that this target will be reached. The implications for funding announcement for ‘starter homes’ will require further detail to be understood but has little impact on homelessness as such homes are directed as households with incomes above social housing limits.
Rent a room tax relief concern

Focus Ireland also expressed concern that the increase of €2,000 (from €14,000 to €16,000) in the rent a room tax relief will be seen as permission to increase rents at this rate.

The increased borrowing power for local authorities is potentially positive but will depend on the details. Real change will require a change of approach as well as a change in budgeting. If the Department of Housing continues to seek to control the borrowing decisions of local authorities, it will have little or no impact.