Camden Council is addressing a rise in rent arrears among its tenants, a situation compounded by an increasing number of residents receiving Universal Credit. However, as of September 2025, arrears had reduced by £1.5 million.
The issue was discussed at the Camden Town District Management Committee meeting on 26 November 2025, where the Rent Arrears Management report highlighted the council's strategies to manage the problem and improve income recovery.
The report indicates a collection rate of 100.68% as of October 2025, surpassing the 99% target. This positive performance reflects consistent reductions in arrears over the past year, achieved through focused interventions and improved operational practices.
A significant challenge remains: the increasing number of tenants on Universal Credit, resulting from the Department for Work and Pensions' managed migration. This shift poses difficulties for rent collection, as some tenants find it hard to manage lump-sum payments and may spend the money before paying rent.
Camden Council is responding with several proactive measures:
- Early Intervention: Implementing a new procedure focused on early intervention and consistent engagement with tenants.
- Smart Campaigns: Launching targeted outreach initiatives to reach tenants before key spending periods, such as the December campaign ahead of the festive season.
- Universal Credit Support: Recruiting a dedicated officer to manage Universal Credit migration cases and support tenants in ensuring housing costs are used for rent payment.
- RentSense Target: Aiming for 90% completion through collaborative patch support.
- Universal Credit Verification Automation: Exploring automation software to streamline Universal Credit verification, freeing up officer time for arrears management.
- Court Process Management: Continuing in-house management to reduce delays.
- Direct Debit Flexibility: Reviewing collection dates to better align with Universal Credit payments and reduce missed rent due to lump-sum spending.
The council is also considering more flexible collection options to enable tenants to pay rent on time, acknowledging that the current three fixed Direct Debit dates do not align with the income schedules of many residents.
