A Labour MP has accused private landlords’ rent levels of being responsible, at least in part, for the size of the welfare budget.

Economists calculate that in 2025/26 the UK welfare budget was some £322.6 billion. The independent Office for Budget Responsibility says that by 2029/30 it will rise to some £373.4 billion.

Almost exactly a year ago most Labour MP{s indicated opposition to the then-Starmer government’s working-age welfare reform plan, which would have reduced the welfare bill by some £5 billion. 

However now one Labour MP – Margaret Mullane, who represents Dagenham and Rainham – says: “High private sector rents are also having a massive impact on the nation’s welfare budget and driving so many councils to the brink of collapse.”

Mullane gos on to say the Housing Benefit (a part of the overall government welfare spending) has “ballooned to well over £30 billion a year, with the majority of this going to private landlords. In addition to this sum, a further £3 billion is paid by local authorities on top of the HB payments.”

She makes the claim in an article on the Labour List website.

In the piece, she calls for private rent controls to come on top of the Renters Rights Act which is now in effect. 

She writes: “Whilst I understand the arguments against rent controls – one being the theory that it would result in the mass sale of property, flooding the market and leading to a crash in house prices – I think this is short-termism.

“Many of our European neighbours have rent control systems. 

“It isn’t a radical idea. France, Germany and Ireland have limitations on rent increases in areas experiencing a tight housing market. Ireland refers to these as ‘rent pressure zones’. 

“I believe a similar model could be trialled in the UK at a local authority level in areas with significant social and economic pressures.”

You can see her complete argument here: https://labourlist.org/2026/06/the-case-for-capping-rents/