The Welsh Government commissioned an interdisciplinary team, including Alma Economics and Cardiff University, among others, to identify options for reforming the Priority Need test. The test is used to assess homelessness services applicants’ need for housing services and identify those with priority need for accommodation, for whom councils need to secure suitable, long-term housing. The reforms aim to widen the priority need categories as part of a phased abolition strategy.

Our team was responsible for assessing the impact of the different reform options. As part of this work, we engaged with all councils in the country, gathering information on homelessness service use and costs through an online survey. We used data from the survey to develop a flexible simulation model that estimates the impact of the different reform options on key areas over the next ten years. Key areas of impact include demand for and costs of housing services and housing benefit, as well as wider financial benefits from reforming the test as a result of households exiting homelessness and rough sleeping.

Our model can be used throughout the five-year implementation of the policy reform, providing Welsh Government analysts with the robust evidence base needed to decide on the optimal implementation strategy.

➥ The Review of Priority Need in Wales can be downloaded at the Welsh Government website.