Conservative leader Kemi Badenoch has rejected claims that her party’s proposed housing benefit cuts would force people into homelessness.
Instead, she argued that some people receiving housing support may need to move to cheaper areas.
The Conservatives say their plans could reduce the housing benefit bill by around £4bn. They want to use some of the savings to help fund higher defence spending.
Badenoch Says Existing Tenants Would Be Protected
Badenoch said existing tenants would not lose their homes under the proposals.
She also said pensioners would be exempt from the changes.
However, people living in expensive areas who rely on housing support could face lower payments when they start new tenancies.
Badenoch argued that those affected could move to cheaper accommodation instead.
The Conservative leader said taxpayers should not be expected to fund housing costs wherever someone chooses to live.
Burnham Warns of Rising Homelessness
Prime Minister Andy Burnham strongly criticised the proposal during Prime Minister’s Questions.
He argued that national security should not come at the expense of social security.
Burnham also warned that cutting £4bn from housing support could increase homelessness and push more children into temporary accommodation.
He said Labour would reduce welfare costs through a different approach.
That includes building more council homes, helping young people enter work and providing greater mental health support.
Conservatives Want Defence Spending at 3%
The dispute is closely linked to the Conservatives’ plans for defence spending.
Badenoch has challenged Burnham to commit to spending 3% of GDP on defence by 2030.
She says welfare reforms could help cover the additional cost.
The wider Conservative package would also include bringing back the two-child benefit cap, which Labour removed in April.
How the Housing Benefit Cuts Would Work
The Conservatives have identified two main areas for savings.
First, the party says it could save at least £2.2bn by freezing social-sector rents instead of allowing annual increases linked to inflation.
Second, it wants to reduce Local Housing Allowance rates for new private-sector tenancies.
For existing tenants, the rates would remain frozen until they gradually fall into line with the new limits.
The Conservatives estimate these measures could save another £1.8bn.
Housing Costs Put Pressure on Benefits
Housing benefit helps people on low incomes or those who are unemployed pay their rent.
For private renters, the amount available depends partly on Local Housing Allowance rates, which vary between areas.
The number of people relying on housing support has increased as private rents have risen sharply.
As a result, the overall housing benefit bill is expected to remain a major government expense.
Housing Charities Reject Badenoch’s Argument
Housing campaigners have warned that moving to cheaper areas may not be realistic for many families.
Shelter said families could still struggle to find affordable homes because housing benefit rates vary across local areas.
The charity also warned that people could face severe financial pressure if their support falls below their rent.
Karen Buck, chair of Generation Rent, similarly warned that the proposals could increase homelessness and put additional pressure on councils.
Conservatives Face Pressure Over Homelessness
The debate highlights the difficult balance between reducing welfare spending and protecting low-income households.
Badenoch insists that her proposals would protect existing tenants while reducing the amount of support available for some future tenancies.
However, opponents argue that lower payments could leave families unable to afford their current homes.
They also warn that councils could face higher costs if more people require temporary accommodation.
Final Decision Could Shape Housing Policy
The Conservatives are continuing to argue that welfare savings can help pay for stronger national defence.
Meanwhile, Labour says it wants to reduce welfare costs by tackling the causes of high housing and unemployment spending.
The dispute is likely to remain a major political issue as both parties debate how Britain should balance defence priorities with social protection.
For now, Badenoch maintains that her housing benefit cuts would not deliberately make people homeless, while critics warn that the consequences could be very different in practice.
