McConalogue welcomes increase in Defective Concrete Blocks Scheme cap and rates

"The Defective Concrete Blocks Scheme provides that grant rates can be amended each year to reflect updated costs of building. This announcement by the Department of Housing follows on from the decision taken by Government at this week's Cabinet meeting to approve the details of the first annual increase under the Scheme,” the Minister for Agriculture, Food and the Marine said.

"Importantly for homeowners currently undertaking work, the Government decision also approved the Minister for Housing to retrospectively apply the increased rates to homeowners currently undertaking work in the scheme and to those who have been approved their grant award and are yet to commence work,” he added.

"The decision sees the overall cap under the scheme increase by €42,000 bringing the overall cap to €462,000. This will mean that along with the SEAI energy upgrade grants, the total maximum funding available for rebuilding a home will now rise to €499,550. Meanwhile, foot rates for rebuild and remediation options under the scheme will increase in Donegal by between 7.71% and 8.73%.

"This would mean that a homeowner approved for the average grant amount of €326,000 under the scheme would receive an extra €26,000 as a result of the increase in square foot rates. A similar 10% increase will apply to all ancillary grants with for example the accommodation grant increasing by €1,500 to €16,500,” Minister McConalogue commented.

“To implement the decision the Minister for Housing Darragh O’Brien will now introduce regulations to immediately apply the increased rates to new entrants to the scheme, while an amendment to the Defective Concrete Block Scheme legislation will be drafted to ensure that the increased rates are applied retrospectively to those who are currently in the scheme and have already received their grant approval,” he explained.

“Each week, we are now seeing more homes get into construction, with a total of 49 homes now completed and 301 more underway in Donegal. It is important that we see this momentum built upon in the year ahead. A total of 880 Donegal homeowners have now received grant approval under the Scheme with almost two thirds of these being for full demolition.

“While this decision is to apply to homeowners who are currently undertaking work, as well as those who have yet to commence, I have also pressed for further consideration by the Department of Housing in advance of the amending legislation being finalised of the potential for the application of these increases to those homeowners who have already completed their works under the Scheme,” the Donegal minister added.

“This week’s decision is an important step in the continuing rollout of the Defective Concrete Blocks Scheme. While the new scheme is not perfect, the work continues to ensure the rollout of the scheme as effectively as possible. I will continue to work and be a voice in Government and at the Cabinet table for affected homeowners,” Minister McConalogue said.

Link to details of increases in rates and caps below:

https://www.gov.ie/pdf/?file=https://assets.gov.ie/307496/4672c30e-f95c-44ce-86fb-1a3ceacc562f.pdf#page=null