CHC statement: Welsh Government draft budget 2024/25
Welsh Government has today published its draft budget for 2024 to 2025.
Responding to the news, Stuart Ropke, Community Housing Cymru chief executive, said:
“We recognise that today’s draft budget brings challenging news for all public services that the people of Wales rely on.
“If we want to set a sustainable course out of the housing crisis, it is absolutely essential that we can continue to build affordable homes for the people of Wales. We are pleased that the Welsh Government has clearly recognised this in its protection of the Social Housing Grant in the draft budget today. Welsh housing associations are currently building 70% of social homes and now will be able to continue this progress for another year.
“However, simply building the safe, warm, affordable homes our communities need is not enough.
“The Housing Support Grant, which is the primary mechanism for preventing homelessness and supporting independent living, has been frozen. In reality, a cash-flat settlement is a real terms cut. Our research shows that in the event of a freeze, more than three-quarters of service providers that rely on the HSG are likely to reduce capacity - meaning they will not be able to reach as many people who need support.
“40% of providers are also likely to hand back contracts, and 48% are likely to make staff redundant. This will impact some of the most vulnerable people in Wales; the dedicated people who work for these crucial organisations; and other services, like the NHS, which are already overstretched.
“Ending the housing crisis is our collective goal. But to do this, we have to create a sustainable solution where both long-term investment in new and existing homes, and prevention and support services for people, are prioritised.”
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