Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said that the government’s botched mortgage interest tax relief is “failing to support households struggling with soaring mortgage costs”.

Figures released to Teachta Doherty by the Department of Finance reveal that less than 12,000 households have received and fully benefitted from the tax credit out of 707,000 mortgage holders in the State, with more than 90 percent of the money allocated to the tax credit not even been paid to households, despite the credit being open to applications since January.

The Donegal TD was speaking after the Central Bank recorded a worrying rise in early mortgage arrears as households struggle with rising interest rates and the cost of living crisis.

Speaking today, Teachta Doherty said:

“The government is failing households struggling with soaring interest costs.

“In less than two years, mortgage interest costs have increased by a massive 64 percent.

“Yesterday the Central Bank recorded a further 3 percent rise in early mortgage arrears in the last three months of 2023, driven primarily by vulture funds.

“This is clear evidence that workers and families are struggling with rising interest rates and the cost of living crisis.

“It is clear that the government’s botched mortgage interest tax credit is failing to support households.

“Figures released to me by the Department of Finance show that, out of 707,000 mortgage holders in the State, less than 12,000 households have received and fully benefitted from the tax credit.

“Over 90 percent of the money allocated to the tax credit has not even been paid to households.

“We now also know that there are hundreds of households that have applied for this tax credit but have been denied it or only received it in part because their incomes are too low – this includes lone parent families that have seen their mortgage costs rise by thousands of euros.

“This botched scheme is clearly failing to support workers and families hit hardest by soaring interest rates and reveals a government that is completely out of touch with the pressures so many are facing.

“For over a year, Sinn Féin campaigned for the introduction of mortgage interest relief applied at source, which would have provided households with support of up to €1,500.

“If our proposals had been implemented, every struggling household would have received much needed support.

“Instead, under this government, hundreds of thousands of households are facing no support whatsoever.”