Welsh Government final budget: 2026/27 - The Housing Support Grant (HSG)
The HSG is the Welsh Government’s principal funding stream for preventing homelessness and supporting independent living. Every year, the services that the grant funds help more than 60,000 people to avoid homelessness, escape abuse, live in their own homes and thrive in their communities.
Research from our joint Home Matters campaign with Cymorth Cymru shows that demand for housing support services continues to outstrip supply. This investment is vital to ensure services can meet growing demand, pay frontline workers at least the Real Living Wage, and cover increased costs like National Insurance contributions.
The 2% increase that was proposed in the Welsh Government’s draft budget for 2026/27 was simply not enough. We called on the Welsh Government to increase this by a further 10% in its final budget.
The final budget increased this to 3.27%. Whilst we were disappointed that this was not higher, the HSG is one of only three areas in the Housing and Local Government expenditure group that received an increase of more than £1m in the final budget, demonstrating our influence in the prioritisation of funding allocations.
