Home Matters: Welsh Government must invest in housing support now if its plans to end homelessness are to succeed

While the recent agreement with Plaid Cymru has assuaged concerns about a budget not passing and provides a welcome boost to local government, the real contents of the budget remain underwhelming. This budget - a “steady as she goes” rollover budget - means key public services will lose out considerably, with the most vulnerable in our society suffering as a result.

Housing advice and support services - be that in local authorities, housing associations or the charity sector - play a crucial role in preventing and alleviating homelessness. They help tens of thousands of people every year to recover from traumatic events and put them on a course to live safely and independently.

These services are largely funded by the Housing Support Grant, part of the Welsh Government’s Homelessness Support and Prevention budget. The grant funds vital programmes such as safe accommodation for women who have experienced domestic abuse and tailored support for people with disabilities.

But as Cymorth and Community Housing Cymru’s report shows, these services are on the brink thanks to higher costs, growth in demand and an increase in the complexity of support needs.

The Welsh Government currently proposes a 2% inflationary increase to the Homelessness Support and Prevention line. However, this is not enough to pay staff the real living wage, cover the costs of increased National Insurance contributions and cope with rising demand. This is why we are urging MSs to push for a further 10% increase to homelessness and housing support.

The housing support sector told us that, as a result of a 2% increase, they are likely to reduce capacity, freeze recruitment and - for the most part - not bid for contracts. Some 63% of respondents told us they are likely to make staff redundant. Redundancies and a recruitment freeze would equate to 300-400 job losses in the sector.

The already considerable demand on support services, and indeed social housing, is likely to increase as new legislation comes into force. Currently making its way through the Senedd, one of the central aims of the Homelessness and Social Housing Allocation Bill is to create a more person-centred and preventative homelessness system.

Several key parts of the Bill specifically relate to providing housing support for vulnerable people. One of these is the introduction of a new duty on local authorities to help homeless applicants to retain suitable accommodation once it has been secured. We have remained supportive of this proposal and believe that it will be a real step change in helping to keep people living well in their homes.

However, the level of support and complexity faced by those in homelessness accommodation is a crucial element which will drive costs. With the homelessness and housing support sector already struggling to provide people with the vital support that they need, the success of legislative reform relies on a properly funded Housing Support Grant, which can begin with this budget.

Collectively, greater capital investment through the Social Housing Grant and TACP and protected Discretionary Assistance Funding for those in urgent need are also essential measures that must be recognised in this budget. Taken together with a meaningful uplift in the Housing Support Grant, this investment allows for a well-resourced social housing sector that can make a greater contribution to creating a fairer and healthier Wales.