Cymorth Cymru and Community Housing Cymru have published their ‘Home Matters’ report, which outlines the need for a 16% increase in the Homelessness Support and Prevention budget in the Welsh Government’s upcoming budget for 2027/28.
Download the report in English or in Welsh.
Our Home Matters report outlines the significant pressures facing homelessness and housing support providers, including higher costs, funding constraints, a huge growth in demand, and an increase in the complexity of people’s support needs.
Based on surveys of support providers and frontline workers, the report found that:
- 83% of support providers are running services at a deficit (up from 66% last year).
- 57% are using reserves to prop up essential services.
- On average, providers can only sustain subsidising these services for 1.5 years.
- 68% reported an increase in demand for their services since last year.
- 83% reported an increase in the complexity of support needs since last year.
Looking to the 2027/28 budget
The report also models the likely impact of an inflationary increase, a cash-flat budget and a 3% funding cut – with the last two scenarios likely to result in service reducations, redundancies and closures.
Our survey of homelessness and housing support providers found that a cash-flat budget would result in:
- 70% would likely need to reduce service capacity
- 70% would likely need to freeze recruitment
- 65% would likely not bid for new or re-tendered contracts
- 51% would likely need to make staff redundant
- 38% would likely need to hand back an existing contract
- 8.1% reduction in the workforce – around 243-324 people losing their jobs
Katie Dalton, Director at Cymorth Cymru said:
“The Housing Support Grant and Homelessness Prevention Grant provide life-changing, and often life-saving, support to tens of thousands of people throughout Wales.
“However, these services continue to be under significant strain due to year-on-year increased demand and complexity, coupled with 15 years of funding constraints.
“If the Welsh Government is serious about prevention and tackling homelessness, this budget needs to be increased in 2027/28. Otherwise, services will be forced to reduce or even close, leaving people without the support they need to escape homelessness and abuse.”
Elly Lock, Head of Policy and Research, at Community Housing Cymru, said:
“Wales is at a crucial stage in its journey to end homelessness as it begins the process of implementing new, once in a generation legislation.
“Prevention is at the heart of this approach, recognising the devastating effects that homelessness has on people’s lives and the pressures it places on public services.
“Housing support and prevention services are therefore more vital now than ever. Greater funding is needed to keep services open and avoid poorer outcomes for people across the country.
“Given housing associations’ role in tackling homelessness, we need a long term plan to kickstart Wales’ housing recovery – ensuring everyone has a safe place to call home.”