BBC finds companies exploiting welfare system in Birmingham

Birmingham hosts 34,000 residents in supported housing

Birmingham currently has 34,000 people living in the supported housing scheme.

This number is higher than the approximately 22,000 residents in London, even though London has a population more than seven times larger than Birmingham.

The Department for Work and Pensions spent £410 million on Supported Exempt Accommodation in Birmingham during the last financial year.

Property agents profit from high benefit payments

Property agents use social media videos to attract people into the Supported Exempt Accommodation system with offers of free rooms, PlayStation consoles, and holidays.

A sister company of Dawson Housing bought a house for £191,000 and sold it for £410,000 one year later.

Dawson Housing, a not‑for‑profit registered provider, was paid £443 per week in housing benefit, totaling £23,000 per year, for a resident's room and support costs.

Dawson Housing was paid £443 per week for a resident's room and support while its contractor, Second City, was accused of providing poor service.

Vulnerable residents report lack of required support

Alysha, a survivor of domestic violence, reported that she received no support while living in three different supported housing properties, including one managed by Second City Support Ltd. Under current law, registered accommodation providers are only required to offer care that is "more than minimal".

There is also evidence that some parties made benefit claims for individuals who did not live in their properties.

Windrush Alliance and major providers face compliance issues

A new board of directors found in 2024 that the company's financial position was compromised through an outflow of funds to former directors and companies under their control. The current directors deemed the "recoverability" of payments to former directors "questionable," which resulted in the fees being written off.

Five of the six largest supported housing providers in Birmingham, including Windrush, are non-compliant with standards set by the Regulator of Social Housing. These five providers continue to operate and receive hundreds of millions of pounds in housing benefit payments.

Windrush Alliance did not respond to a request for comment from the BBC.

Regulator moves to close Concept Housing Association

The Regulator of Social Housing announced last week it is launching action to close Concept Housing Association. The regulator took this step because the organization failed to address serious operational failings.

Nxtgen Housing denies discouraging resident employment

Nxtgen Housing denied claims that it discouraged a resident named Brian from pursuing employment or improving his financial situation. The company told Panorama it discussed support plan options with Brian, who selected the areas he considered relevant.

A support worker then worked with him on those plans. The government recently changed rules to allow residents in supported exempt accommodation to earn more income without affecting their benefits.

Birmingham City Council addresses oversight and fraud concerns

Birmingham has become a center for this issue due to the availability of cheap three-bedroom family homes that can be converted into five or six individual rooms with shared facilities. Many people blame poor oversight from the Birmingham City Council for the high number of these property conversions.

Councillors and charities stated that the council approves applications for central government funding rather than paying for them with council money. Roger Harmer, who became leader of the council after the May 2026 elections, denied that the council pays for these applications.

Harmer stated his officers are working to eradicate fraud and poor provision. He noted there is a huge incentive to crack down on bad providers, but he cautioned that shutting down one property often results in providers opening in the next house. Harmer pointed out that housing benefit rules are set by the Department for Work and Pensions.