Increases in defective concrete blocks scheme cap and rates confirmed

Proposed increases to the cap and square foot rates of the Government’s Enhanced Defective Concrete Blocks Grant Scheme have been confirmed. 

The cap will increase by €42,000  to €462,000 while the square foot rates for rebuild and remediation options will rise in Donegal by between 7.71% and 8.73%. Ancillary grants, such as the accommodation grant,  will rise by 10%.  

It has also been confirmed that the increased rates will apply retrospectively to homeowners currently in the scheme.

The proposed increases to the cap and rates emerged last month and the decision was taken by the Government at this week's Cabinet meeting to approve the details of the first annual increase under the scheme.

In examples cited by the department, the grant for a three-bedroom semi-detached estate house of 98 square metres under remediation option 1 will increase from  €200,410 to €217,952, an increase of €17,542 or 8.8%.

The proposed new grant for a four-bed single rural bungalow of 180 square metres under remediation option 1 would rise to €400,320 from €368,100, an increase of  €32,220 or 8.8%. 

Under the new rates, the grant for a four-bedroom single rural two-storey house would increase from €405,600 to €440,700, up €35,100 (8.7%).

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Donegal TD Charlie McConalogue welcomed the confirmation from the Department of Housing, Local Government and Heritage and said that along with the SEAI energy upgrade grants, the total maximum funding available for rebuilding a home will now rise to €499,550. 

"The Defective Concrete Blocks Scheme provides that grant rates can be amended each year to reflect updated costs of building,” 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.

 “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.”