The latest report on government services from the Productivity Commission has unveiled $6 million was cut from public housing spending for 2021, prompting social groups to call out a worsening in Canberra's social housing crisis.

But the ACT government said the drop in funding was from construction delays due to wet weather and supply chain issues.

The updated report also showed a drop in the number of public housing dwellings which met the minimum acceptable standards.

In 2021, 73.4 per cent of people living in public housing were in dwellings which met standards, which is down from 80.3 per cent in the prior year.

A further $4.5 million in all social funding by the ACT government was cut during 2021.

Canberra was also below the national average in terms of amenities and proximity to necessary services for public housing tenants.

Tenant surveys in the latest survey also points to a drop in the level of satisfaction in the service from the housing provider.

Meanwhile, the ACT Council of Social Services has hit out at a decline in social housing properties in the territory. ACTCOSS chief executive Emma Campbell has called for an urgent review into the implementation of the ACT's housing strategy.

"Despite an urgent need for social housing - the ACT had a shortfall of more than 3,000 social dwellings and more than 2,000 Canberrans experiencing homelessness last year - the number of social houses available in the ACT is declining," Dr Campbell said.

"The RoGS data tells us that there are fewer social housing dwellings today than there were in 2018, when the ACT Housing Strategy was launched. Meanwhile, almost 3,000 households languish on the ACT's social housing waiting list."

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ACTCOSS also flagged Canberra had the highest level of rental stress in the country and the region being short thousands of dwellings which is pushing more people into homelessness.

The ACT government defended its investment into public housing and said the report on government services showed the territory was a national leader in providing housing.

It said the ACT had consistently invested more recurrent expenditure per capita in social housing than all other jurisdictions, except the Northern Territory.

It pointed to the government's promise to add an additional 400 properties to Canberra's public housing stock and 600 affordable rental properties by 2025.

"Expenditure over the six years is not a linear calculation and can be impacted by external factors. For example at a point in time (i.e. RoGs data point), construction delays due to wet weather or supply chain issues as a result of a global pandemic may result in the delay of milestone payments," an ACT government spokeswoman said.

There was $100 million allocated to public housing improvements and projects in the 2021-22 ACT budget.

$80 million is set to be spent over three years on maintenance and there is $19 million for new public housing properties and demolition of older properties.

The territory government has claimed that more than $1 billion will be invested in public housing in the 10 years to 2025.

Much of this money has been spent on public housing renewal with the government selling off much of its older stock. This included multi-unit properties in the town centres and the city.

Housing advocates are often critical of the ACT's investment into community housing - the territory has the lowest proportion of community housing stock in the country.

Maintenance of ACT's public housing properties has come under fire, with claims that properties do not meet habitation standards.

ACT opposition housing spokesman Mark Parton said the drop in funding showed the government had failed to properly maintain Canberra's public housing.

"The numbers don't lie. In the reporting period, recurrent expenditure on public housing has fallen by a whopping $6 million," Mr Parton said.

"This Labor-Greens government has failed in its basic duty of care to thousands of Canberra's most vulnerable residents and they should be ashamed."

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