Housing benefit freeze raises concerns over homelessness in Wales

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Homelessness charity Crisis Cymru has warned that the continued freeze on housing benefit could undermine efforts to tackle homelessness in Wales, despite new investment in housing announced by the Chancellor.

The charity says the decision to maintain the freeze across the UK will make it harder for people renting privately to afford their homes, particularly as rental costs continue to rise.

Lauren Caley, Senior Policy Officer for Crisis Cymru, said:

“There is much for England to welcome in today’s UK Budget, particularly on making progress against the pledge to end rough sleeping. Sadly, however, today makes clear that the freeze on housing benefit will continue across the UK.

“The decision to keep housing benefit frozen will undoubtedly hinder efforts by the Welsh Government to reduce homelessness. Incoming changes intended to strengthen homelessness prevention in Wales will face additional challenges while housing benefit remains out of pace with the real cost of renting privately.

“Re-aligning housing benefit so that it covers at least the lowest 30% of rents would protect people in Wales, and across the UK, from the impossible choice of keeping a roof over their head or paying for life’s other essentials.

“Today’s Budget evidenced the Prime Minister’s commitment to delivering social homes at scale and pace in England. We encourage the Welsh Government to echo this in their upcoming Welsh budget, to realise their pledge of delivering 20,000 social homes in this Senedd term. Next month, they have the same opportunity as Andy Burnham: to demonstrate that social housing is a genuine priority backed by meaningful investment.”

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