Homelessness costs surge over 600% as councils struggle to meet soaring demand

Friday, 10 October 2025

 

A record number of households in Wales are living in temporary accommodation, as rising demand for homelessness support has driven council spending up more than 600% over the past decade.

Welsh Government figures show that more than 10,900 people are currently living in temporary accommodation across Wales. While the number of families with children has fallen slightly, overall demand remains high, with single people finding it especially hard to secure permanent housing. 

The amount of money that councils spend on dealing with homelessness has also jumped from around £13 million in 2016-17 to £101 million in 2025-26 - an increase that has far outpaced local government funding and forced councils to divert money from other vital services. 

Research by Crisis found that, in the three years to July 2024, rough sleeping almost doubled, the number of households in temporary accommodation nearly tripled, and the use of bed and breakfast accommodation rose more than fourfold. 

The WLGA is calling for urgent, long-term action to reduce homelessness, including sustained investment in affordable and social housing, greater focus on prevention, and fairer funding to help councils meet rising demand. 

 

Councillor Andrea Williams, WLGA Spokesperson for Housing said: 

“Behind every stark statistic is the hidden cost of homelessness: the strain on families, services, and communities that grows with every unmet need.

“Homelessness is not just a housing issue. It affects health, education, and communities. Councils cannot tackle this situation alone. Without sustainable funding, we are forced to divert resources from other vital local services.

“The ambition set by the Welsh Government’s landmark Homelessness Bill is to be welcomed. A focus on prevention and a housing-led approach, accompanied by long-term funding and investment, will be the only way to realise those aims.

“Both in the here-and-now and in the future, councils want to keep supporting families to keep a roof over their heads. That’s why we need urgent, long-term solutions meet the huge demand. This includes increased funding, investment in affordable and social housing, and better support for single people as well as families.”  

Categories: News

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