More than 70% of homelessness services in Wales ‘could be reduced or lost’ without grant increase

The grant helps more than 60,000 people by providing refuge, supported accommodation and tenancy support, and preventing people from sleeping rough.

This includes enabling people to leave abusive relationships and overcome trauma, mental health problems and substance use issues.

Cymorth Cymru and CHC said the HSG suffered a real-terms cut in 2023-24, at £166.7m, despite rising costs and inflation, and increasing demand.

Since 2012, cuts and a lack of increases meant housing support funding has decreased by £24m in real terms.

Research by the Welsh membership bodies found this lack of funding has caused 27% of homelessness support providers to reduce service capacity, and 66% are having to operate waiting lists for services.

Two-thirds are running at a deficit, and 45% of support providers have chosen not to bid for new or re-tendered contracts, as they are unable to deliver safe, high-quality services for the available funding.

There are currently more than 11,000 people in temporary accommodation in Wales.

Katie Dalton, director of Cymorth Cymru, said: “Everyone deserves a place to call home, but our research paints an alarming picture of housing support services on the brink of collapse, which would be disastrous for people experiencing, or at risk of, homelessness.

“Unless there is an increase in funding, providers will need to close vital services or significantly reduce delivery at a time when more people than ever are in need of help.

“These not-for-profit providers desperately want to deliver safe, high-quality services that transform people’s lives, and they share the Welsh government’s ambition to end homelessness. However, this can only be achieved if the HSG is increased in next year’s budget.”

Cymorth Cymru and CHC held a joint day of action earlier this month as part of their Housing Matters campaign, to highlight the severe impact a cut to the HSG could have on vulnerable people across Wales.

Rhea Stevens, head of policy and external affairs at CHC, said: “These services make a real difference to the lives of people at risk of, or experiencing, homelessness and their loss or further reduction would be absolutely devastating for Wales. It would risk deepening the homelessness and housing crisis.

“The help that they provide is life-changing – and yet they have been under constant pressure over the last decade. Funding constraints, a huge growth in demand for support, and an increase in the complexity of people’s support needs are all pushing services closer and closer to breaking point.”

A Welsh government spokesperson said: “We recognise the immense pressures facing frontline housing support services and the importance of their work.

“This is why we maintained the previous increase to the HSG budget this year so that it remains at £166.763m, despite the extraordinarily difficult budgetary position.

“Ministers face an incredibly difficult task in setting a budget for next year. The draft budget will be published on 19 December.”

Concern about the HSG comes after CHC held its annual conference last month. During the event in Cardiff, the chief executive of the membership body, Stuart Ropke, outlined the difficult decisions landlords were having to make during what he described as a “perfect storm” in the sector.