Nearly £100m spent on temporary accommodation for homeless in Wales

Martin Shipton

Almost £100m was spent by local councils across Wales last year as they grappled with skyrocketing costs needed to house homeless people and families in temporary accommodation.

New figures from Shelter Cymru show that the amount spent in 2023-24 was more than double what it was just three years before.

In 2020-21, the total cost in Wales was £41,164,170.50, In 2021-22 it rose to £54,483,758.69, climbing further to £71,377,719.29 in 2022-23. By 2023-24 it had risen to £99,011,630.82.

With more than 11,000 people now trapped in temporary accommodation, including almost 3,000 children, this dramatic increase in costs can in part be attributed to the increasing scale of the housing emergency Wales faces. However, Shelter Cymru’s research also identified that costs of temporary accommodation are rising twice as fast as demand for temporary accommodation is increasing.

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Private sector

This suggests that rising costs are also driven by an increased reliance on the private sector to provide accommodation for homeless families and individuals. In some areas, almost 100% of temporary accommodation is being provided by the private sector. And across Wales more than 50% of households in temporary accommodation are living in such places.

Practically, argues Shelter, this means people stuck in hotels and B&Bs that aren’t suitable for their needs. It means people living for extended periods in caravan parks and in holiday accommodation – often far from schools or support networks.

And it means councils paying private business large sums of money for often unsuitable and inadequate places. Sadly, says Shelter, this situation offers only a snapshot into the wider housing emergency we face - with the rising cost of temporary accommodation just one example of the impact of a decades long-failure to provide the homes people need.

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Impact 

Shelter Cymru says it also sees the impact of this failure through the advice services it provides to people across Wales. In 2023/24, the charity provided advice to almost 12,000 households – 1 in every 113 families in Wales. In 88% of cases it was able to help avert homelessness, and in 59% of cases, it was able to keep people in their own homes, reducing the pressure on local authorities to provide temporary accommodation.

Shelter says it knows the demand for its services is greater than its capacity to meet it. And that for those facing homelessness its advice can be the difference between a Christmas at home rather than in temporary accommodation.

Ruth Power, CEO of Shelter Cymru, said: “Wales is in the midst of a housing emergency. An emergency that sees thousands of people and families trapped in inadequate temporary accommodation that is also putting increasing pressure on local authority finances.  Something has to change. And in the long term we know that there is no solution that doesn’t include an increase in the number of social homes in Wales. “However, in the immediate future we also need to ensure that advice and support is available to all those who are at risk of homelessness.

“Shelter Cymru has a vital role to play here, and that’s why we are asking for two things this Christmas. Firstly, for the Welsh Government to increase the prioritisation of, and investment in, ending the housing emergency. And secondly, for those who can, to donate to our Winter Appeal: by providing specialist advice and support to people at risk of losing their home, we can stop homelessness before it starts.”

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Temporary accommodation

As an illustration of the kind of case where Shelter can make a difference, Ms Power cited the example of a single mother of two who is stuck in temporary accommodation this Christmas.

“Alice [not her real name] and her two sons were initially housed in a B&B with single people with complex needs,” said Ms Power. “Alice and her children felt unsafe as people were taking drugs, drinking heavily and fighting in the B&B.  Alice has had to give up her job since becoming homeless, as where the family was placed was too far from her work for her to continue to manage her shifts and childcare.”

Alicd said: “The B&B has a bad reputation. People came and went at all hours, it was noisy, it was scary. And I was there with the kids just feeling really vulnerable. All I want is somewhere permanent so I can get my life back to normal, so I can get a job again. But it’s just the waiting. It’s been years. We’re not able to make plans. We’re stuck here. You can’t think about planning your future. You don’t know where you’ll be living next week or next month.”

Shelter Cymru has advocated for the family and they are now in a self-contained unit with a kitchen and private bathroom while they wait for a social home. The charity will continue to work with Alice and her family until they are in a safe and stable home.

Ms Power said: “Stories like that of Alice and her family highlight the importance of access to expert advice. Advice that can both help improve the immediate situations people face and that can help find the right long-term solutions.”

Freedom of Information request

Data on the cost of temporary accommodation is based on Freedom of Information requests submitted by Shelter Cymru to all local authorities in Wales.

This Christmas Shelter Cymru is asking people to Give the Gift of Home by donating to support its work: For every £1 donated to Shelter Cymru, 89p goes directly to helping people in Wales and 11p is used to fundraise the next £1.

Total spend on temporary accommodation by local authority in 2023-24

Blaenau Gwent: £983,600.00

Bridgend: £5,092,919.00

Caerphilly: £5,904,646.00

Cardiff: £32,423,647.00

Carmarthenshire: £2,881,774.00

Ceredigion: £704,780.00

Conwy: £4,358,626.00

Denbighshire: £6,274,907.00

Flintshire: £6,779,000.00

Isle of Anglesey: £521,000.00

Merthyr Tydfil: £2,671,835.00

Monmouthshire: £3,838,179.86

Neath Port Talbot: £4,307,802.00

Newport: £3,282,691.00

Pembrokeshire: £2,787,700.00

Powys: £3,201,186.88

Rhondda Cynon Taf: £1,008,601.00

Swansea: £1,919,862.00

Torfaen: £1,188,097.17

Vale of Glamorgan: £754,738.91

Wrexham: £2,755,081.00

Total for Wales: £99,011,630.82

Donations can be made to Shelter Cymru here.