MABS sees 10% surge in families in debt due to soaring cost of living

Irish Examiner

14-07-2025

A branch of Ireland's money advice service has urged the Government to introduce targeted budget supports to address spiralling debt and housing pressures following a surge in its caseload.
The South Munster Money Advice and Budgeting Service (MABS) issued the call after reporting a 10% rise in caseloads across Cork since the start of this year.
In its pre-budget submission, it said the rising caseload highlights a deepening crisis among low-income and vulnerable households — driven by unsustainable mortgage repayments, soaring rental costs, and crippling utility arrears.
South Munster MABS regional manager Ursula Collins: 'Too many people are falling through the cracks because supports are too slow, too limited, or simply don't reflect the cost of living on the ground.' File picture: Diane Cusack
South Munster MABS regional manager Ursula Collins said it is now supporting an average of 190 new clients every month in the region.
'That's not just a number — it reflects hundreds of households facing choices between heating, rent, food or mortgage payments,' she said.
'Too many people are falling through the cracks because supports are too slow, too limited, or simply don't reflect the cost of living on the ground.'
Among key issues flagged by its clients were escalating mortgage distress, a utility bill crisis, and soaring rent.
On the mortgages issue, Ms Collins said temporary arrangements for struggling mortgage holders are proving unsustainable as interest rate increases are passed on rapidly, while rate decreases have not been, with many mortgages now held by non-bank entities carrying higher interest and fewer protections.
She said MABS has also seen a sharp rise in utility arrears, with some bills reaching up to €9,000.
'We cannot build sustainable repayment plans when providers are asking for lump sums that our clients simply don't have,' Ms Collins said.
The winding down of 'hardship funds' and uncertainty around energy credits have left many vulnerable households at serious risk of disconnection, she warned.
On the rent issue, she pointed out that the average rent in Cork is now around €1,900 per month, and that it is placing immense pressure even on those receiving rental supports such as the housing assistance programme (HAP).
Its pre-budget submission, MABS calls for the introduction of:
A social energy tariff to protect financially vulnerable households and for stronger protections against utility disconnection;
An overhaul of HAP and the rent supplement systems to reflect real housing costs;
Expanded support for people in long-term mortgage arrears, including reform of the mortgage to rent scheme;
More permanent viable solutions being offered to mortgage holders;
Broader access to hardship funds and emergency supports for those in arrears.
MABS also called for a cross-government financial inclusion strategy to end the 'poverty premium' paid by low-income families — many of whom are forced to rely on expensive credit or are locked out of basic financial services.
'We are urging policymakers to implement the practical, evidence-based recommendations outlined in our pre-budget submission to prevent deeper hardship and long-term social costs,' Ms Collins said.
'We want to ensure Budget 2026 is people-centred and will help vulnerable households desperately in need of support.'
Last Friday, Taoiseach Micheál Martin warned of a challenging budget and again ruled out a repeat of previous one-off cost-of-living supports despite concerns about soaring prices.