New findings from the National Housing Federation (NHF) reveal that rent arrears among tenants on Universal Credit remain significantly higher than those paying by other means – a challenge allpay Limited is helping social housing providers tackle head-on. 

According to the NHF’s quarterly survey, over half (51%) of general needs residents now claim Universal Credit, a figure that continues to grow each quarter. Alarmingly, nearly half (48%) of those claimants were in rent arrears at the end of December 2024, compared to just 28% of tenants using other payment methods. Despite a modest reduction in overall arrears, Universal Credit recipients still owed an average of £641 in back rent, a substantial burden for both tenants and housing providers. 

A trusted partner in payment solutions 

With over three decades of experience in delivering payment services to the public and social housing sectors, allpay’s mission has never been more relevant. allpay’s secure, multi-channel payment solutions, including Direct Debits, online, in person and app-based payments, empower tenants to manage their rent more flexibly and consistently, helping to reduce arrears and ease pressure on landlords. 

“As Universal Credit continues to reshape how tenants receive and manage their finances, we’re committed to working closely with organisations to provide user-friendly, reliable payment options,” said Michelle Pacey, Managing Director at allpay Limited. “By enabling choice and control, we help tenants stay on top of rent payments, reducing the risk of arrears and eviction.” 

Improving outcomes for tenants and landlords 

The NHF survey highlights that while the total arrears on Universal Credit accounts dropped slightly to £58 million in December 2024, this still far exceeds the £23 million owed by residents paying by other means. The consistent disparity in average arrears (£641 versus £468) underlines the importance of solutions that support financial stability. 

allpay continues to innovate in this space, offering tools that integrate seamlessly into housing providers’ systems, while prioritising accessibility for all tenants – whether online, over the phone, in person, or via our app. 

Looking ahead 

As economic pressures continue and more residents transition to Universal Credit, the ability to offer adaptable, consistent rent payment methods will be essential. allpay remains at the forefront, supporting landlords in reducing arrears and improving tenant engagement through smarter payment technology.