The Department for Work and Pensions (DWP) is under mounting pressure to bring the Housing Benefit bill under control, following projections that it will surge to an eye-watering £38.8 billion in 2026-27. This represents a 40 per cent increase compared to 2018-19 levels, prompting urgent calls for reform.
Rising Claims and Costs
In February, the number of Housing Benefit claims stood at 1.5 million. The DWP expects the national bill to climb even higher, reaching £40 billion by 2030-31. Lord Best, co-chairman of the All-Party Parliamentary Group on Housing and former chairman of the Affordable Housing Commission, highlighted the worrying trend: “There are more people renting and fewer people buying their own homes. That is a very worrying long-term trend because by the time people get to retirement, their income halves but their rent keeps going up. So they’re on housing benefits before you know it.”
Government Response
In response to these challenges, Labour has pledged to build 1.5 million homes over the course of this parliament. Lord Best urged the government to increase housing supply so that people can move off benefits and reduce the DWP welfare bill. “I think everyone feels frustrated. It comes back to the quantity of homes, which is about housebuilding mostly. There isn’t enough to go around,” he said. He added that reaching 300,000 homes per year seems unlikely without a miraculous change, describing the outlook as “pretty gloomy.”
DWP Statement
A DWP spokesman said: “We are fixing the broken system we inherited – by tackling rising rents and the housing shortage with our commitment to build 1.5 million homes – the biggest boost to social and affordable housing in a generation. This comes alongside our wider welfare reforms which are set to save £1.9 billion by the end of 2030-31, ensuring that the system supports people who genuinely need it, while delivering fairness to the taxpayer.”
