Barking and Dagenham Council's rent collection has fallen short of its targets, with concerns mounting over the ongoing migration of tenants to Universal Credit. The latest figures, presented to the Cabinet on Tuesday 24 March 2026, revealed that rent collection stood at 98.63% by the end of the third quarter of the 2025/26 financial year. This figure was below the target of 101.09% and represents a decrease of 2.46% compared to the same period in the 2024/25 financial year, when the rate was 101.1%. The House Mark Collection
, which excludes brought forward arrears, for Q3 2025/26 was 99.72%, down from 100.72% for Q3 2024/25.
Councillor Maureen Worby, Cabinet Member for Adult Social Care, Health and Housing, acknowledged the challenges during the meeting. While rent collection figures were presented, the report highlighted the migration of tenants to Universal Credit as a significant risk
to future collection rates. The council is actively tracking these accounts, which are continuing to be tracked weekly, but the transition is expected to continue impacting revenue.
The challenges tenants face during the transition to Universal Credit are multifaceted. The continuing cost of living crisis, combined with rising Council Tax levels
is increasing demand on services beyond current capacity. Furthermore, the reduction in the maximum award given to Council Tax Support claimants from 85% to 63% has resulted in a significant increase in Council Tax charged to the lowest income residents of the borough.
This has led to a significant increase in Council Tax charged to the lowest income residents of the borough, impacting their ability to meet rent obligations.
The migration of social housing tenants to Universal Credit has been slower than anticipated, meaning these risks will continue to affect collection rates. While the exact demographics are not explicitly detailed beyond social housing tenants, the increased Council Tax burden suggests that low-income residents are particularly vulnerable.
To mitigate the impact of Universal Credit migration on rent collection, Barking and Dagenham Council is implementing several strategies:
- Affordable Repayment Plans: The Council Tax team has engaged with residents to agree on repayment plans that are affordable and sustainable, which has
significantly improved the collection rate for those on the lowest incomes.
- Discretionary Relief: To support residents facing financial hardship due to the reduction in the Council Tax Support Scheme, £360,000 of discretionary relief has been awarded. This assistance is targeted at households experiencing significant bill increases and demonstrating efforts to maintain payments.
- Temporary Officers: To manage the increased volume and complexity of customer enquiries, temporary officers have been recruited, funded by a GLA grant.
- New Enforcement Agents: Newly procured suppliers will begin working with the Council Tax team in March to develop collection strategies aimed at improving the collection of both arrears and current year debt.
The council acknowledges that significant work is being done to maintain and increase collection rates,
but stresses that the challenges around UC migration should not be underestimated and are likely to have greater impacts into 2025/26 than seen in 2024/25.
Further details on the council's financial reports can be found in the Public reports pack Tuesday 24 March 2026.
