THERE WAS A government overspend of €607 million on international protection accommodation in 2024, according to a new report published by the Public Accounts Committee (PAC).

Publishing the figures, the committee called for “strengthened oversight and accountability”.

It also called for the Department of Justice, Home Affairs and Migration to “improve contract management and demonstrate better value for money in the provision of international protection and temporary protection accommodation”.

The responsibility for the provision of this accommodation moved from the Department of Children, Disability and Equality to the Department of Justice, Home Affairs and Migration in May 2025, headed by Justice Minister Jim O’Callaghan.

Expenditure

After expenditure of €655 million on international protection accommodation in 2023, an allowance of €409 million was provided for in 2024.

However, the actual spend was €1.06 billion, an overspend of €607 million.

The PAC report stated that the justice department attributed the €607 million overspend in 2024 to “the record number of international protection applicants and the need to bring additional accommodation into use throughout 2024”. 

The Department noted that during 2022-2024, accommodation requirements rose from 7,000 to around 33,000 beds.

The number of new applicants in 2024 was also the highest in the history of the State.

The report looked at both spending on international protection and costs related to temporary protection for Ukrainians in 2024.

Total expenditure in this area amounted to €2.3 billion, with €1.06 billion for international protection accommodation and €1.21 billion for Ukraine-related accommodation and supports. 

The funding programme for Ukraine accommodation and related costs in 2024 was €1.49 billion, meaning there was an underspend in this area of some €280 million.

The report said this was “driven by reduced commercial accommodation costs, due to a lower number of beneficiaries of temporary protection arrivals being accommodated and the ongoing consolidation of the Ukraine accommodation portfolio”.

Commercial providers

Speaking at the launch of the report, PAC chair John Brady said there were “significant concerns regarding the procurement, commissioning and management of accommodation services, particularly in relation to contracts with commercial providers”.

He added that the “scale of expenditure in this area is staggering, and has made millionaires out of a small number of individuals”.

The committee recommended that the justice department set out, within nine months, a “detailed” plan for expanding State-owned international protection accommodation services (IPAS) accommodation and a reduction in reliance on “higher-cost” commercial providers.

In 2024, €978 million was spent in commercial centres, with the highest-paid single contractor receiving €45.55 million.

The department estimated that the average cost per applicant, based on accommodation and related costs such as facilities management, transport and utilities, was €84 per night in 2024.

This increased to €97 per night in 2025.

Excluding ancillary costs, commercial providers were paid €71 per applicant per night in 2025, while State-owned accommodation averaged €40 per night. 

The report said “this underpins the medium-term policy objective to expand the latter type of accommodation”.

The report meanwhile noted that the department has “indicated an intention to increase State-owned accommodation capacity from approximately 4,000 beds to 14,000 by 2028”, something the PAC said would “improve long-term value for money”.

Recommendations

The Committee report made 13 recommendations “aimed at strengthening oversight and accountability” and added that it expected “timely implementations”.

Brady remarked that “as expenditure in this area has increased substantially, the need for robust systems and effective oversight has become even more important.

“We expect timely implementation of the recommendations and will pursue updates and clear evidence of progress on tackling these hugely important issues.”

Among the recommendations is a need for greater transparency around the costs associated with deportations.

Six charter flights costing close to €1.7 million removed 205 people in 2025, while four flights costing over €2.1 million had removed 172 people by June 2026.

The PAC recommended that the department introduce a dedicated breakdown of these costs from 2026 onwards.

‘Poor financial oversight’

Labour TD and PAC member Eoghan Kenny said the report “raises serious questions about how billions of euro of taxpayers’ money have been managed”.

He said that of the 161 accommodation centres examined, 97 were flagged for potential overpayments.

“These are deeply concerning findings that demand accountability,” said Kenny.

He added: “Let me be absolutely clear. This is not about the people who came to Ireland seeking safety or fleeing war. It is about the State’s responsibility to ensure that public money is properly spent.”

“Protecting vulnerable people and protecting taxpayers’ money are not competing responsibilities,” said Kenny. “The State has a duty to do both.”

Kenny remarked that an “emergency is not a blank cheque” and that “extraordinary pressures facing the State do not remove the obligation to maintain proper contracts, financial controls and oversight”.

He added that “fundamental questions remain about the full extent of historical overpayments, how much public money has been recovered and whether further sums are owed to the State”.

Numerous cases are said to be ongoing, with one contractor identified as owing up to €345,660, and with successful overpayment recoveries amounting to €975,000 to date.

Brady meanwhile said that the Comptroller and Auditor General (C&AG) identified an estimated €7.4 million in VAT overcharging by one provider.