Housing benefit spending in Britain is projected by the Department for Work and Pensions (DWP) to increase by £913 million, reaching £38.8 billion in 2026–27. In real terms, this would be the highest level recorded since comparable figures began in 1970, representing a 40 per cent rise compared to 2018–19.
Lord Best, co-chair of the All-Party Parliamentary Group on Housing and former chair of the Affordable Housing Commission, attributed this trend to a persistent housing shortage. He said this is excluding more people from home ownership and pushing rents higher, which in turn is likely to increase reliance on housing support through housing benefit or the housing element of Universal Credit.
He warned that declining home ownership and rising rental reliance pose long-term risks, noting that as people reach retirement their incomes typically fall, while rents continue to increase.
Housing benefits bill hits record £39bn under Labour
Housing benefit costs hit all-time high – BeBeez International