Government unveils £10bn housing package but social-rent target conflicts with earlier pledge as Burnham backtracks

Ministers announced a £10bn housing programme earmarked to deliver 60% social rented homes, a position at odds with the prime minister’s earlier call for the funds to be used exclusively for social housing; the announcement coincides with ministers signalling support for vulnerable households as an Ofgem price-cap decision looms.

The government has set out a £10 billion housing programme that it says will increase the supply of affordable homes, but the stated aim that 60% of the new units will be for social rent sits uneasily with an earlier call from the prime minister that the funds be spent entirely on social housing. The move also comes as Andy Burnham has reportedly stepped back from a prior pledge on social renting, prompting political debate over the best route to deliver affordable homes.

Housing package and political reaction

Officials described the package as a significant investment intended to boost housing delivery, but critics and some local leaders pointed to the rate of social rented provision as falling short of initial expectations. The contradiction between the 60% target and the prime minister’s previously expressed position has created immediate tension within government circles and among opposition figures pushing for a higher share of genuinely secure, low-cost social tenancies.

Energy support and looming Ofgem decision

Separately, the energy secretary said ministers are considering “a range of support” for vulnerable households facing rising bills, comments made ahead of an upcoming Ofgem announcement on the energy price cap. PA Media reported forecasts indicating household bills could rise by about 4%, to the equivalent of £1,729 a year, as a widened conflict in the Middle East — described in some accounts as sparked by Donald Trump’s war on Iran — continues to drive up wholesale energy prices.

Pressure on ministers and households

Officials face growing pressure to reconcile housing policy goals with fiscal and delivery constraints while also responding to short-term cost-of-living pressures for vulnerable households. The government’s dual challenge is to deliver on pledged housing investment and to provide timely support if energy prices rise further when Ofgem sets the cap level, a decision expected tomorrow. The unfolding developments are likely to shape political debate in the coming days over priorities for public spending and protections for struggling households.