The UK Chancellor has today announced £180 million in extra funding for the Welsh Government, as part of his Spring Statement.
Cymorth Cymru is calling on the Welsh Government to allocate an additional £16.7 million* to the Housing Support Grant in order to avoid a funding crisis that will see services forced to close or reduce their capacity.
*This is based on data collected from homelessness and housing support services that the cost of delivery will increase by 10.1% in 2023/24.
Data collected from homelessness and housing support providers in the last 3 months shows:
- 93% of service providers are extremely or very concerned about their ability to continue delivering services if there is no increase to the HSG
- Approximately 29% of HSG funded staff are paid below the new National Living Wage and Real Living Wage
- One support provider told us it will cost them an additional £500,000 to pay their staff the RLW in the 2023/24. Another told us that it would cost them in excess of £1million.
- 18% of frontline workers are struggling to pay their rent
- 56% are struggling to pay their bills
- 46% of frontline workers we surveyed said they spent 76-100% of their wage on essential living costs. A shocking 14% said their wage does not cover all of their essential living costs
Cymorth Cymru Director Katie Dalton said:
“The Welsh Government has the opportunity to avert a crisis in homelessness services by allocating an extra £16.7 million* to the Housing Support Grant, following the UK Government’s announcement that Wales will receive an extra £180 million from the Spring Statement.
“Last week I spoke to service providers and local authority commissioners who are having to decide which services to reduce or close due to the lack of additional funding from the Welsh Government, despite the pressure on homelessness services being greater than ever.
“In addition to this, it is estimated that 29% of housing support workers are currently paid less than the new National Living Wage, despite doing an incredibly important and skilled job. It is essential that the Welsh Government lives up to its commitment to the Real Living Wage and ensures that services have the funding they need to pay a fair wage and sustain services.”
*This is based on data collected from homelessness and housing support services that the cost of delivery will increase by 10.1% in 2023/24.
