Britain’s housing benefit bill is forecast to reach a record £38.8bn in 2026/27, according to DWP projections — the highest level in real terms since comparable records began in 1970.
The figures highlight the growing pressure within the UK housing market, with rising rents, limited supply and increasing reliance on support through Housing Benefit and Universal Credit.
Official data suggests almost 6 million people across England, Wales and Scotland will receive housing support this year — around 1.2 million more than in 2019/20.
Private rents have reportedly risen by around 35% since the pandemic, whilst housebuilding completions have fallen to a decade low and planning approvals continue to decline.
More than a third of all housing benefit spending is now understood to flow into the private rented sector, underlining the continued shortage of social housing and the growing importance of private landlords in supporting housing demand.
Labour has reiterated its pledge to deliver 1.5 million new homes during this parliament, although industry figures suggest supply remains some way behind demand at present.
At Littlefairs, we continue to see first-hand the increasing demand for rental accommodation across York, alongside the affordability pressures many tenants are now facing.
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