Housing charity condemns Government plans to cut capital spend on social housing

– Social housing spend falls from €17bn to €4.4bn

The Irish Council for Social Housing (ICSH) today urged the Government not to renege on its promise in the National Development Plan to deliver social housing to the 56,000 households currently on waiting lists for housing.

The Review of the Plan announced today by Government signals a massive reduction in the social housing investment programme for the next seven years. The original plan committed €17bn for social housing over a seven year period whereas the redrafted programme commits to a much reduced figure of €4.4bn over a seven year period.

Recognising the financial difficulties facing the country, the ICSH has proposed a new ‘mixed funding model’ whereby voluntary housing associations leverage private finance to purchase or build housing. This will involve a portion of capital funding as well an on-going revenue funding requirement.

The ICSH is therefore asking the Government to ensure there is sufficient revenue funding available for social housing so a mixed funding model can be used to provide housing in the absence of an adequate capital programme.

The revised NDP effectively rolls back on the commitment made to the poorest households to provide them with a home.

Successive Budgets have already seen the capital investment in social housing reduced by over 40% from almost €1.4bn in 2008 to under €800m in 2010. This reduction is far higher than any savings in tender prices and output has fallen in the last two years at a time when more homes are needed by those who are on incomes of less than €15,000 per annum.

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For further information contact Karen Murphy on 01 6618334.

Note to Editors

• The Irish Council for Social Housing is the National Federation of social housing organisations with over 300 housing associations affiliated nationwide.
• The Irish Council for Social Housing is a member of the Community and Voluntary Pillar of Social Partnership.
• Voluntary housing associations currently manage over 23,000 homes in every local authority area in the country serving the needs of 500 local communities.
• In addition Voluntary housing associations house approximately 2500 new households each in need of housing on local authority waiting lists which include families, older people, people with disabilities and the homeless.