A stark increase in financial distress across Cork has prompted urgent calls for government intervention, as South Munster Money Advice and Budgeting Service (MABS) reports supporting 190 new clients every month since January.
The regional debt advice service has recorded a 10% rise in caseloads across Cork this year, with families increasingly forced to choose between basic necessities like heating, rent, food, and mortgage payments. The concerning trend has been highlighted in their pre-Budget 2026 submission, which calls for immediate government action to address what they describe as a deepening crisis among vulnerable households.
Ursula Collins, Regional Manager of South Munster MABS:
“We’re 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.”
The service has identified three critical pressure points affecting Cork residents: escalating mortgage distress as interest rate increases hit borrowers hard whilst decreases have been slow to materialise, a utility bill crisis with some arrears reaching €9,000, and rental costs that now average €1,900 per month in Cork, placing strain even on those receiving Housing Assistance Programme support.
“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.”
The organisation warns that temporary mortgage arrangements are proving unsustainable, particularly for loans now held by non-bank entities that often carry higher interest rates and fewer consumer protections. Meanwhile, the winding down of Hardship Funds and uncertainty around energy credits has left many households at serious risk of utility disconnection.
“We cannot build sustainable repayment plans when providers are asking for lump sums that our clients simply don’t have.”
South Munster MABS is pushing for a comprehensive response in Budget 2026, including a Social Energy Tariff for vulnerable households, an overhaul of HAP and Rent Supplement systems to reflect actual housing costs, and expanded support for long-term mortgage arrears. They’re also calling for stronger protections against utility disconnection and broader access to emergency supports.
The group wants policymakers to introduce a cross-Government Financial Inclusion Strategy to eliminate the “poverty premium” that forces low-income families to rely on expensive credit or excludes them from basic financial services entirely.
“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. We want to ensure Budget 2026 is people-centred and will help vulnerable households desperately in need of support.”