I know there have been news stories recently about delays in the Passport office, but to my knowledge they were related to overseas applications.
No, the delays are affecting all passport applications right now and I believe most of the delayed applications are for in-country passport renewals.
According to an article I just read on the BBC website (published today). there are currently about 500,000 UK passport applications waiting to be processed (400,000 more than this time last year), and the passport office are currently planning to process 180,000 per week for the duration of the summer.
A first British passport normally takes
at least 6 weeks for processing, but that's when there are no delays... so it could be much longer with the delays.
A work colleague of mine applied to renew her UK passport about 4 weeks ago, and she still hasn't heard anything yet... and normally it takes 2-3 weeks for a regular passport renewal, but apparently it's been taking 6 weeks recently.