Councils have been handed more control of homelessness budgets after the Government devolved funding for managing temporary accommodation.
The devolution was unveiled yesterday as part of a range of new measures designed to tackle homelessness and support vulnerable people.
The announcement also includes £5m funding for 25 local authorities to help them move people out of temporary accommodation and into a permanent home.
Communities minister Marcus Jones said: 'This funding will help alleviate some of the immediate pressures and allow those councils that most need it the breathing space to innovate and focus on preventing people becoming homeless in the first place.
'The Government is also giving local authorities more control and flexibility over homelessness budgets by devolving the funding for managing temporary accommodation.
'From 2017 to 2018 £10m extra a year is being allocated to areas under the most pressure, to give them more flexibility and choice in how they respond.'
Mr Jones confirmed the Homelessness Prevention Grant of £315m for local authorities was also being protected.