Croydon Council is set to implement a more targeted strategy to improve Universal Credit payment collections within its Homes Directorate. The move comes as the council grapples with broader financial challenges and seeks to stabilise its budget, aiming to reduce its reliance on Exceptional Financial Support (EFS) from the government.

The decision was revealed during a Scrutiny & Overview Committee meeting on Tuesday 18 November 2025, where members reviewed recommendations from sub-committees. The committee approved the recommendations for submission to the Executive Mayor and Cabinet for consideration.

One key recommendation focused on Universal Credit payment collections. The Homes Directorate is tasked with developing and implementing a targeted strategy to improve these collections, with progress updates to be reported back to the Sub-Committee. This initiative aims to ensure that residents receiving Universal Credit are meeting their payment obligations, thereby boosting the council's revenue.

The focus on Universal Credit collections aligns with Croydon's broader efforts to stabilise its financial situation. The council has been working to reduce its reliance on Exceptional Financial Support (EFS) from the government. According to the 2026-30 Medium Term Financial Strategy Update, the council aims to reduce its EFS requirement for 2025-26 by £27.3m to £108.7m through the implementation of a Stabilisation Plan. This plan includes a range of initiatives beyond Universal Credit collections, such as:

  • Actions related to non-pay and pay inflation budgets.
  • Managing risk contingency budgets.
  • Housing target adjustments.
  • General Needs allocation to Temporary Accomodation (TA).
  • Reducing TA placements from 25% to 20% of presentations.
  • Accelerating the house buying process for homeless families.
  • Introducing more Out of Borough private sector placements.
  • Accelerating the Target Operating Model Programme.
  • Achieving in-year savings through cost reductions and income generation.
  • Maximising floor occupancy at Bernard Weatherill House (BWH).
  • Maximising Disabled Facilities Grant usage.
  • Accelerating the Adults Living Independently (ALI) Programme.
  • Enhancing Access Croydon services.
  • Opening Precious House children's home.
  • Reducing the capital programme by removing £1.5m from 2025-26 and deferring £500k to 2026-27.

As Croydon Council navigates its financial challenges, the focus on Universal Credit debt collection signals a commitment to improving efficiency and ensuring financial stability.