Andy Burnham handed £14.3bn plan to rewire England's 'failing' housing benefit system

Andy Burnham has been handed a £14.3billion plan to rewire England's "failing" housing benefit system.

A new report by think tank Policy Exchange set out a sweeping set of reforms to axe lifelong social tenancies - while making savings and putting Britons at the top of the queue.

Current spending on housing benefits and housing via Universal Credit is estimated to fall around £37.2billion in 2025/26 and forecast to reach £43.5billion by 2030/31.

Meanwhile, English councils forked out £2.84billion on temporary accommodation in 2024/25, with net costs of £1.43billion after considering subsidies and household contribution.

Despite 1.34million households sitting on the waiting list, a mere 263,000 households received a new social letting across 2024 and 2025.

The think tank's proposed reforms have promised more than one million extra social housing opportunities for Britons over the next 10 years.

As part of that plan, people who "give back", such as those who work, train, care for others or volunteer, are prioritised amid the staggering list of 1.34million households awaiting housing.

Helen Whately MP, Shadow Secretary of State for Work and Pensions, has backed the proposed plan, urging Mr Burnham to adopt the overhaul.

"Social housing should be a safety net for families in difficult times and a springboard to help them get back on their feet," Ms Whately said.

"But our social housing provision is failing on both counts. There’s a shortage for families who desperately need it and no incentive for people to move on from state-subsidised accommodation.

"The potential for social housing to help people who need to move for work is totally overlooked."

She added the think tank's proposals are "bold", heaping praise on its "spot-on ambition to free up homes for those who desperately need them".

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"At a time when taxpayers are being made to stump up for ever more welfare spending, a substantial policy paper which shows a different way to support people is welcome," she finished.

As part of the sweeping overhaul, the plans involve axing life-long social tenancies, and replacing the scheme with a new "Opportunity Route" to support tenants' getting back to work.

They also set out a new "Pay to Stay" system for higher-earners, with households earning more than the national average income paying a greater share of maximum rent.

And, finally, the report proposed cutting benefits for working-age tenants who choose not to work - despite being able to.

Those impacted would have their benefits cut by 20 per cent after two years, which would increase to 40 per cent after another two years.

Jean-André Prager, Senior Fellow at Policy Exchange, author of the report and former welfare adviser to three Prime Ministers, said: "Our welfare state should be able to distinguish between temporary hardship, enduring need and changing circumstances.

"Too often our systems treat circumstances at one point in someone’s life as though they will never change.

"For social housing, that means providing security for those who need it, while recognising that for others it should be a route towards work, mobility and greater independence rather than a home for life.

"For help with housing costs, it means support when it is needed, but greater responsibility over time for working-age claimants who can work.

"That is the argument at the heart of Fairer Housing Support: a strong safety net, but a more dynamic system built around need, contribution and changing circumstances.”