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Cymorth welcomes Welsh Government Draft Budget for 2022/23

The Welsh Government has today published its Draft Budget for 2022/23, with indicative spending plans for 2023/24 and 2024/25.

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In advance of this budget, Cymorth Cymru and Community Housing Cymru published the Housing Matters report, which identified three priorities to set us on the path to ending homelessness in Wales:

  1. Provide a three-year indicative funding settlement for the Housing Support Grant, which increases by at least inflation each year, from a baseline of £166 million.
  2. Invest at least £300 million for Social Housing Grant in the 2022/23 Welsh budget, to a total £1.5 billion over five years.
  3. Allocate funding in the 2022/23 budget to enable local authorities to continue to provide emergency accommodation and support to people experiencing homelessness.

People across Wales have joined the #HousingMattersWales campaign over the past few weeks, using their voices to promote our three priorities on social media and with their local and regional Members of the Senedd.

The Welsh Government Draft Budget 2022/23

Today’s Welsh Government Draft Budget includes the following commitments:

Housing Support Grant:

The budget has been maintained at its new baseline of £166,763,000 and remains at this level in the indicative budgets for 2023/24 and 2024/25.

While we would have liked to see an inflationary increase across the three years, we are delighted that the budget has not dropped to its pre-COVID level of £126m and we welcome the stability that a three year indicative budget provides for local authorities and support providers. 

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Social Housing Grant

The Social Housing Grant budget has increased to £310m for 2022/23, followed by indicative increases of £330m in 2023/24 and £325m in 2024/25.

We really pleased to see the continued investment in Social Housing Grant, above the levels we asked for in our campaign.

Budget table SHG.jpg

Emergency accommodation funding

The Welsh Government has provided us with the following information:

  • The draft budget includes an additional £15m in 22-23 in the Homelessness BEL, and a further £5m to this BEL in each of  the following 2 years.  This represents a £25m uplift over the 3 year period.
  • This funding will support a range of homelessness prevention policies as well as providing additional funding to local authorities for emergency accommodation and to support service reform.
  • Details of allocation methodology have not yet been agreed and will be the subject of engagement with the sector early in the new year.
  • LAs are reminded that they can block book accommodation in advance for 2022-23 and where payment has to be made upfront this can be claimed from the 2021-22 hardship fund

The Welsh Government has told us:

The draft budget includes an additional £15m in 22-23 in the Homelessness BEL, and a further £5m to this BEL in each of  the following 2 years (so £25m uplift over the 3 year period). This funding supports the Government’s commitment to supporting those who need to access emergency accommodation during these difficult times and our longer term ambitions to fundamentally reform homelessness and move to a rapid rehousing approach.

Of the increased funding for 22-23 we would expect around two thirds to be invested in continuing our support for those in urgent need for temporary accommodation. We will be working with local authorities early in the new year to agree details of how this funding can best support local authority work in this area.

It will be important that as a sector we use this funding to not only ensure people have emergency shelter when they need it but, importantly that we invest in long term policies and approaches that help us make homelessness rare, brief and unrepeated in Wales.

Cymorth Cymru Director Katie Dalton said:

“We are extremely pleased that the Welsh Government’s budget for 2022/23 includes a commitment to investing £166m in the Housing Support Grant and over £300m in the Social Housing Grant..

“While homelessness is more than just a housing issue, we know that the supply of social homes and high quality support services are critical to achieving our ambition to make homelessness rare, brief and non-repeated.

“It is particularly helpful to have a three year indicative budget, which provides an element of stability for local authorities, housing and support providers, helping them to plan and deliver for the future.”

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© Cymorth Cymru 2022
Company Registration No: 5093332
Charity No: 1116774