Taxpayers are being “ripped off” as increasing numbers of higher earning households are handed subsidised social housing under Labour, the Conservatives have said, after new figures revealed a record rise in placements for families earning more than £50,000 a year.
Sir James Cleverly, the shadow housing secretary, accused the Government of allowing scarce housing resources to be diverted away from those most in need after more than 2,190 social housing placements in England were awarded to households with post tax incomes of at least £50,000 during 2024-25.
“On Labour’s watch, much-needed social housing is going to well-off people at the taxpayers’ expense and nothing is done about it,” Sir James said. “Labour should act to stop the taxpayer being ripped off.”
The figure is the highest since records began in 2007 and represents an 88 per cent increase compared with the previous year. In 2021-22, just 270 such placements were recorded.
The surge follows Labour’s decision to scrap Conservative proposals that would have introduced stricter means testing for social housing applicants, including a “maximum household income threshold” aimed at preventing better off households from accessing subsidised homes.
The plans were abandoned after Labour entered government, with Angela Rayner, the then Deputy Prime Minister and Housing Secretary, overseeing the reversal.
Official data also showed that 225 households earning more than £70,000 after tax were granted social housing tenancies last year, despite record pressure on waiting lists and continuing shortages across the sector.
Around 1.3 million people are currently waiting for social housing in England, the highest number since 2014, with many low income families facing years on local authority lists.
Critics say the figures raise fresh questions about whether councils and housing associations are applying sufficient financial scrutiny when allocating homes that are typically rented at below market rates.
Eligibility for social housing is determined by local authorities and housing providers, with decisions based on factors including homelessness, vulnerability, family circumstances and financial need. However, there is no national income cap in place.
Labour defended the figures, arguing that wage inflation had pushed more households above the £50,000 threshold and noting that such tenants still accounted for a relatively small proportion of new lets.
A government spokesman said: “Wages rise with inflation, which will contribute to more people earning £50,000 in social housing now compared to previous years. Only 2pc of new lets go to households earning £50,000 and above.
“There are clear laws in place to ensure social housing is targeted towards people that need it most.”
Separate figures from the English Housing Survey suggested the number of relatively affluent social housing tenants has continued to grow more broadly. More than 400,000 tenants were found to have household incomes higher than 60 per cent of households in England overall.
Meanwhile, official data showed the median post tax income of new social housing tenants remained just over £18,000 a year, highlighting the widening gap between the majority of applicants and a smaller number of wealthier recipients.
The scale of higher earning households in social housing may be even greater than official figures suggest. Nearly two thirds of tenants, 65 per cent, declined to disclose their income when surveyed last year, the highest non response rate since records began.
The issue has also fuelled political controversy in recent years. Labour MP Apsana Begum was previously reported to be living in a council flat while earning a parliamentary salary of £94,000, despite publicly warning about London’s housing crisis and rising homelessness.
