Inquiry highlights crisis facing Wales’ homelessness services

Housing support services are a vital yet often overlooked part of Wales’ homelessness system, according to new evidence presented to the Senedd’s Local Government and Housing Committee.
The inquiry, examining services funded by the Welsh Government’s £203.4 million Housing Support Grant (HSG), heard that frontline staff are under severe pressure — with some now at risk of homelessness themselves.
Support workers, often paid close to minimum wage, deliver essential services that help around 60,000 people a year avoid homelessness, stabilise housing situations, and access long-term accommodation.
One professional told the Committee: “You’ve got frontline staff in the hostels who are more or less on minimum wage, doing a night shift, doing 12-hour shifts… managing overdoses, managing challenging behaviour… They’re sometimes having to make life or death decisions on their own and they’re paid pennies.”
Sian Aldridge from homelessness charity The Wallich said: “We see staff who are themselves at risk of homelessness, and they’re trying to support others in their homelessness journey, and that’s just not right.”
Research by Cardiff Metropolitan University and Alma Economics found that every £1 invested in HSG services delivers a net saving of £1.40 by preventing homelessness and easing pressure on health and justice services.
Cabinet Secretary Jayne Bryant MS acknowledged the “miraculous work that staff do under pressure,” noting that budget uplifts of £13 million in 2024-25 and £21 million in 2025-26 are intended to help pay the Real Living Wage and expand capacity. However, she added: “I know we need to do more.”
The Welsh Government has created a Workforce Task and Finish Group to make recommendations on pay, staff support and recruitment, due to report back in the autumn.
The Committee made three key recommendations, including the full publication of performance data to allow comparison across local authorities — a proposal the Welsh Government accepted in full.
It also called for clearer evidence and guidance to support the Welsh Government’s “rapid rehousing” model, which aims to move people from temporary to permanent homes more quickly, and for stronger leadership on joint working between health and housing services.
The Senedd will debate the Committee’s report on Wednesday 8 October 2025.
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