DUBLIN – The Department of Housing, Local Government and Heritage is facing massive cost overruns in its efforts to manage the national homelessness crisis, with officials forced to seek an additional €152 million this year alone to cover the soaring costs of emergency accommodation.
The supplementary funding request reflects the rapidly escalating scale of homelessness in the state, which has repeatedly hit new record highs throughout 2025.
Cost Overrun Highlights Crisis Scale
The initial budget allocation for homeless accommodation and services for 2025 was set at €327.81 million (including capital funding). The current request for an extra €152 million means the total projected expenditure on accommodation services will be significantly higher than budgeted, underscoring the severe and persistent upward trend in the number of people requiring state-funded emergency shelter.
Homeless services expenditure has been on a steep upward trajectory for years, driven by the acute shortage of affordable housing.
- Record Figures: Latest official figures indicate that the total number of people accessing emergency accommodation has surpassed 16,000 for the first time in the state’s history, including over 5,000 children.
- Emergency Accommodation Usage: A significant portion of this expenditure is directed toward Private Emergency Accommodation (PEA), such as hotels and B&Bs, which local authorities rely on heavily due to the lack of sufficient supported temporary accommodation. This reliance on the commercial sector drives up the overall cost.
- Policy Challenge: The rising expenditure on emergency accommodation contrasts sharply with the need for greater investment in homelessness prevention and social housing acquisitions to provide sustainable exits from homelessness.
The additional funding is critical to maintaining essential services for those without a home, but it simultaneously highlights the immense financial burden the long-term housing crisis is placing on the Exchequer.
