The call comes as Cymorth Cymru publishes its latest Home Matters Report. The Report highlights the growing pressures facing homelessness and housing support services and warns that current funding levels are no longer sufficient to meet rising demand.
“At Llamau, we see the impact of homelessness every day and we know that preventing homelessness has life transforming benefits for the people we are proud to support. Year on year demand for our services is increasing, last year alone we delivered our support to 21,967 young people, women and children across a range of services including supported accommodation and our Youth Homelessness Helpline experienced an 83% increase in calls. As demand continues to rise and support needs become increasingly complex, there is a very real need to secure additional investment in homelessness prevention and housing support services”. Sam Austin, Llamau, Chief Executive.
The Home Matters Report explains that The Housing Support Grant and Homelessness Prevention Grant fund the vast majority of homelessness and housing-related support services throughout Wales, including tenancy support, supported accommodation, housing advice, Housing First services, domestic abuse refuges and youth homelessness projects. These services play a vital role in helping people maintain safe, stable homes and preventing homelessness before it reaches crisis point.
The evidence presented in the Report demonstrates why this investment matters. Research cited by Cymorth Cymru found that every £1 invested in Housing Support Grant services delivers a net saving of £1.40 to other public services by reducing demand on health, social care and criminal justice systems. Based on the current budget allocation, this equates to an estimated annual saving of more than £500 million across Wales.
However, the Report also highlights significant challenges facing the sector. More than four in five providers report running services at a deficit, while a majority are having to use organisational reserves to subsidise contracts. At the same time, demand continues to increase, with more than 10,500 people currently living in temporary accommodation across Wales.
Without additional funding, support providers warn they may be forced to reduce service capacity, freeze recruitment, make redundancies and, in some cases, hand back contracts. Such outcomes would have serious consequences for people facing homelessness and could place additional pressure on other public services.
Investment in frontline workers is also critical. The report found most providers now pay the Real Living Wage, yet only a minority receive sufficient funding to cover the cost. Many frontline staff are themselves experiencing financial pressures, despite providing vital support to some of the most vulnerable people in our communities.
As an organisation committed to ending homelessness and supporting young people to build independent, fulfilling futures, Llamau believes the Welsh Government's final budget must reflect the scale of the challenge facing Wales.
Everyone should have the right to a safe and secure home. Investing in homelessness prevention and housing support services is not only the right thing to do for individuals and families, it is an investment that delivers benefits across communities and public services throughout Wales.
Read Cymorth Cymru's Home Matters Report and learn more about the campaign here.