Welsh government includes additional £20m for social homes in supplementary budget

The Welsh government’s first supplementary budget for 2026/27 includes a further £20m in capital investment to support the delivery of social homes in Wales.

This funding was confirmed by the cabinet minister for finance, Elin Jones, at a Senedd meeting yesterday (23 June).

The announcement follows Plaid Cymru’s election to government in May. As part of its manifesto, the party pledged to build 20,000 new social homes by 2030 and set up Unnos – a national development agency – to support this ambition.

The total level of capital funding for additional social homes currently stands at £465.9m. However, the Chartered Institute of Housing (CIH) Cymru, suggested that around £671m per year would be needed for Social Housing Grant, at current grant intervention rates, to achieve the 20,000-home goal.

CIH Cymru also said it was “disappointed” that the decarbonisation of existing social homes has received no further investment.

Its director, Matt Dicks, urged the government to “provide sufficient funding for both new supply and decarbonisation so that, together, we can deliver safe, sustainable and affordable homes for communities across Wales.”