CIH Cymru welcomes Welsh Government's budget ongoing housing commitment

The Welsh Government has published its draft budget for 2023/24 , retaining a commitment to maintain a record level of investment to develop 20,000 new low-carbon social housing in Wales.

Minister for Finance, Rebecca Evans MS, said it’s a budget ‘made in hard times for hard times’, emphasising that it reflects financial constraints but not a lack of ambition. The budget also maintains a commitment to support the most vulnerable and our public services as we navigate the deepest cost of living crisis in living memory.

The budget has set out minimal changes to the investment announced for housing in the 2022/23 budget which means the following ongoing funding for the sector (up until 2025):

• Ongoing capital investment of £655 for building new low-carbon social homes through the Social Housing Grant - £330m 2023/24 and £325m 2024/25
• £400m to support decarbonisation of existing social housing (including (£216m for LSVT Dowry payments
• £300m capital investment in building safety
• £70m for the Warm Homes Programme (aimed at tackling fuel poverty)
• £50m to support an increase in market housing
• £6.5m investment in the Homebuy scheme
• £3m to expand the private rented leasing scheme
• £10m for homelessness prevention service
• Additional money for Local Authorities - £227m 2023/24 and £268m 2024/25
• Additional £18.8m for Discretionary Assistance Fund

Matt Dicks, national director, CIH Cymru, said:

“This budget has been made in a time of increasing financial pressure for the Welsh Government due to record levels of inflation and increasing costs of borrowing.

“Due to rising inflation the settlement received by Welsh Government from the UK Government could be worth £1 billion less in real terms in 2023/24. Yet against the backdrop of financial constraint CIH Cymru welcomes the Welsh Government’s continued commitment to maintain funding to meet their ambition to develop 20,000 new low-carbon social homes in this Senedd Term.

“We are also pleased that Welsh Government is sustaining the level of funding for social landlords to decarbonise their existing stock and funding for building safety. There are also favourable funding additions for those individuals who are significantly impacted by the cost of living crisis through an increase to the Discretionary Assistance Fund.

We appreciate the difficult decisions Welsh Government have made as part of the draft budget and welcome their ongoing commitment to developing additional low carbon social homes in Wales, a vital part of realising the incorporation of a right to adequate housing in Welsh Law.”