Welsh families at greater risk of homelessness after housing benefit freeze, charity warns

Average private rents in Wales rose by 8.5% in the past year, according to the latest Price Index of Private Rents.

Consequently, Ruth Power, chief executive of Shelter Cymru, said: “Housing benefit is meant to be an integral part of preventing homelessness, providing a vital safety net for those who are struggling.

“However, the decision to once again freeze the amount of support available undermines its ability to do this and puts many households at risk of homelessness.”

Ms Power added that 45% of households coming to Shelter Cymru for support are private renters, with the benefit freeze likely to put greater pressure on local authority homelessness services.

“This is why we are urging Welsh ministers, Senedd members and MPs to lobby the government in Westminster to change its mind and uplift rates to provide people across Wales with the support they need,” she said.

Ms Power also called on the Welsh government to set out its vision “for the future of the private rented sector to address the issues of security, quality and affordability” as well as increase investment in building new social homes.

A Welsh government spokesperson said: “Ensuring everyone in Wales has a decent, affordable and safe place to call home is a key priority. It is important we do all that we can to support those who face severe financial hardship, providing targeted help to those who need it most.

“We are also continuing to ask for Local Housing Allowance rates to be set at the 50th percentile and uplifted annually to better reflect market rents.”

A spokesperson for the UK government said: “No person should be in poverty – that’s why we’ve extended the household support fund again, are maintaining discretionary housing payments and are giving an extra £233m to councils directly for homelessness, including the largest-ever investment in prevention services, taking the total to nearly £1bn for 2025-26.

“Alongside this, we are uprating benefits, increasing the National Living Wage and helping over one million households by introducing a fair repayment rate on Universal Credit deductions, while our child poverty taskforce develops an ambitious strategy to give all children the best start in life.”

Last year, research from thinktank the Bevan Foundation revealed that the number of households living in temporary accommodation in Wales increased by 18% during 2023-24.

The Welsh Local Government and Housing Committee recently agreed to undertake an inquiry into housing for vulnerable people.

In its draft Budget for 2025-26, the Welsh government pledged an extra additional £21m for the Housing Support Grant, which funds frontline housing and homelessness services.