The Department is taking action across all aspects of the international protection accommodation system to improve value for money, strengthen governance and compliance, and renegotiate contracts with providers.
These actions have been escalated since 2025, when the steep increase in applications seen since 2022 began to stabilise. While application numbers remain well above pre-2022 norms, the Department has taken action across all these dimensions to help strengthen and improve the IPAS accommodation system.
This is happening in parallel to the increase in State-owned beds in the system, which over time will allow the Department to continue to reduce reliance on commercial provision.
The Department receives offers of international protection accommodation on an ongoing basis from external commercial providers. All offers are reviewed by the Department under a standardised appraisal procedure.
A dedicated team appraises each offer to accommodate people seeking international protection, and the Department carries out due diligence on the provider who is offering the accommodation service.
This includes checks on the provider offering the service to the Department via the Companies Registration Office (CRO) to ensure compliance with CRO requirements.
Providers must be registered in Ireland. All payments made in respect of International Protection accommodation are to an Irish entity, to an Irish bank account, with tax clearance in Ireland.
Providers may be part of wider commercial groups. The Department carries out its appraisals on the providers making the submission, and does not appraise wider commercial entities which may be associated with providers.
Since 2024, each new or renewing provider of accommodation services must provide a declaration of their personal circumstances. This declaration, which must be notarised, confirms that they are tax compliant, free of any convictions for corruption, fraud or being a member of a criminal organisation. It also confirms that they are solvent and have no history of failing to meet terms of public service contracts, among other requirements.
The introduction of a new rate card model in May 2025 is driving costs down for new and renewed contracts, already saving over €90 million for the State to date. It is being applied to each contract as it comes up for renewal.
All provider payments are published on a quarterly basis by the Department, and a provider's tax compliance is verified at each payment by way of a Tax Clearance Certificate.
In relation to contracts ending, IPAS regularly engages with centres to ensure compliance with contracts and standards, with a dual eye on safety and welfare of residents, while also ensuring value for money and compliance by providers.
Developing more State-owned options will allow us to move away from the current degree of reliance on commercial provision. The purchase of the Citywest Hotel and Convention Centre in 2025 was an important milestone in this strategy, and increased State-owned beds to 4,000 in 2025, compared to 900 in early 2024.
While commissioning emergency commercial accommodation will continue to be necessary in the short to medium term, it is being contracted on a short-term basis, which will enable the State to decommission this capacity with agility as State-owned beds increase, contracts expire or demand fluctuates.
