Source: allpay
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.
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About allpay
As a business we pride ourselves on making payments easy. We stand as a leading payments specialist in the UK, facilitating the seamless collection and distribution of funds between organisations and their customers.
Established in 1994, allpay has consistently been at the forefront of payment aggregation, processing over £9.4 billion annually for over 900 public and private sector entities. With over three decades of experience, we now process in excess of 66.4 million transactions annually, offering a comprehensive bill payment solution that encompasses all major payment methods.
Our commitment to innovation has led us to pioneer the introduction of Prepaid Cards within the Public Sector. From card design to printing and fulfilment, all aspects are handled by our dedicated team. We are also proud to serve over 500 Housing Associations (HAs) and ALMOs, with over 80% of the top 200 HAs in England and nearly 60% of all UK Local Authorities (LAs) choosing allpay for their bill payment services.
What sets us apart is our unwavering commitment to security and compliance. We adhere to the highest standards of PCI DSS compliance, hold various ISO certifications, maintain Bacs-approved Bureau status, and boast accreditations from Mastercard and Visa. In essence, allpay is the preferred payment supplier for the public sector, offering reliability, security, and efficiency in every transaction.
For more detailed information please visit www.allpay.net
