Dear Chair,

I understand that the Finance Committee is currently considering the financial implications of the Homelessness and Social Allocations Bill and wanted to take this opportunity to share the below information with you on behalf of the national homeless charity, Crisis.

It is clear that the Homelessness and Social Housing Allocations Bill will need to be adequately resourced in order to facilitate effective implementation - particularly given that services across the country are already stretched. However, from a financial perspective, we believe it is important to regard the Bill not only as an important invest to save initiative, but as an investment to avoid escalating costs.

The Welsh Government’s most recent statistics show that local authorities recorded 13,689 people as seeking assistance for homelessness between April and September 2024. And in the three years to March 2024, the use of temporary accommodation increased by 189%. These statistics represent a significant scale of human impact and trauma, but they also represent cost to the public purse. Research from Shelter Cymru suggests that the cost of temporary accommodation to local authorities across stood at over £99 million in the last financial year (2023/2024).  

In addition, there is a wide range of research, including from Public Health Wales and Homeless Link demonstrating the increased health and social care needs among people experiencing homelessness. Research conducted by Cardiff Metropolitan University highlights the cost savings that can be made by providing support, finding that every £1 invested in Housing Support Grant services delivers £1.40 net savings to public services in Wales.

We believe that bold action, including the strong emphasis on measures which seek to prevent homelessness and provide people with access to support outlined within the Homelessness and Social Housing Allocations Bill, is essential – not only to save the human cost of homelessness, but also to prevent escalating public costs.

Indeed, the recently published Homelessness Monitor 2025, revealed that homelessness has been rising at a steeper rate in Wales than elsewhere in Britain. It projects that, if no action is taken, homelessness will rise by a further 24% by 2041. In addition, this research outlines that the scope of homelessness prevention is limited by our current structures in Wales. It is clear that taking no action is not an option.

Crisis, along with many other homelessness organisations has welcomed the draft Homelessness and Social Housing Allocations Bill as progressive and transformative legislation. This legislation seeks to positively shift homelessness prevention upstream and ensure people can access support at the earliest opportunity – before their situation worsens and support needs grow.

We urge that resourcing this legislation is given the utmost priority because, quite simply we cannot afford to not take action – on both a human and financial basis.

 If you would like any further information, please do not hesitate to get in touch.

Regards,

Debbie Thomas

Head of Policy in Wales, Crisis