Potential €8m increase in homeless services costs is ‘a licence for hotel industry to print money’

LIMERICK Council’s homeless services, which could cost the taxpayer up to €30million this year, were hailed as “a licence to print money for the hotel industry”. At the recent full meeting of Limerick City and County Council , members were informed that the local authority has seen a significant increase in the cost of providing homeless services. With an estimated cost of €22million in 2026 for emergency accommodation, this figure could now rise by €8m depending on demand, the meeting heard. The Council’s Director of Finance, Matthew White, explained that the local authority is “obliged to provide 10 per cent match funding into the spend of homeless services and we’re seeing a significant increase in cost over the last number of years”. “We budgeted for a cost of €22m this year and it could go anything up to €30m, depending on demand over the coming six months. They put us on notice that there is a risk and we’re just managing that risk.” Mr White said that because of a potential €8m increase, there would be an impact on the Council’s budget for the year, having to find a further 10 per cent match funding – €800k. Independent councillor Jerome Scanlan deemed this a “shocking increase”, pointing out that it was more than 33 per cent of what they had budgeted for in 2026. “There is something radically wrong that this is happening. This is a licence to print money for the hotel industry, and it’s nothing else other than that,” Cllr Scanlan fumed. Cllr Scanlan said that “accommodation can be provided at a much more economic cost to the Council in the rural part of County Limerick than here in the city”. “That will save the discommoding of the unfortunate people that find themselves travelling by bus with children out from the city to Newcastle West. We need to get serious here and cut that cost from €30m,” he insisted. Fine Gael councillor Liam Galvin also raised concerns about families in rural Newcastle West being sent to the city when in need of emergency accommodation. This, he said, is putting huge stress on families, particularly young children, who have to get the bus in and out from the city to attend national school in West Limerick. “This is a system that has failed. It is broken and not working. I would ask for that to be looked at in the county town of Newcastle West,” Cllr Galvin declared. The Council’s Director of Housing, Vincent Murray, clarified in relation to the provision of homeless services in West Limerick that a number of sites are currently being looked at as possible accommodation hubs. Cllr Noreen Stokes (FG) suggested that houses boarded up in County Limerick be given back to those in need of homes as quickly as possible. Her party colleague Cllr Stephen Keary pointed to the revenue office building in Newcastle West, which he said is only 25 per cent occupied, as a suitable location for emergency accommodation. “I think it is high time that was looked at for housing for the homeless. It’s a fantastic building and it’s shameful the way it is being neglected and it’s not being occupied. It’s time to look at that and turn it into living accommodation,” Cllr Keary concluded. The post Potential €8m increase in homeless services costs is ‘a licence for hotel industry to print money’ appeared first on Limerick Post.