Universal Credit
Councils are currently addressing the impact of Universal Credit on rent collection and arrears, while also managing financial pressures linked to increased claims.
Barking and Dagenham Council's rent collection for the third quarter of the 2025/26 financial year stood at 98.63%, below its target, with concerns raised in March 2026 over the migration of tenants to Universal Credit. Similarly, Camden Council addressed a rise in rent arrears among its tenants linked to increasing Universal Credit recipients, though arrears had reduced by £1.5 million by September 2025. Croydon Council is also implementing a targeted strategy for Universal Credit payment collections within its Homes Directorate, as revealed in November 2025.
Haringey Council is facing significant financial strain, with a report to the Overview and Scrutiny Committee in July 2025 highlighting a £143 million funding cut since 2010 and a rising number of residents claiming Universal Credit. In a related development, Ealing Council extended eligibility for means-tested free school meals to all children in households receiving Universal Credit, effective from September 2025, a decision announced in July 2025.
The government announced the extension of free school meal eligibility in June 2025, confirming it would be fully funded, with existing transitional protections continuing until September 2026. Universal Credit is a UK government payment designed to help with living costs for people on low incomes or who cannot work, replacing six other benefits to simplify the welfare system.
Key facts
- Barking and Dagenham Council's rent collection was 98.63% for Q3 2025/26, below its 101.09% target, as reported in March 2026. Source
- Camden Council's rent arrears reduced by £1.5 million by September 2025, despite a rise in Universal Credit recipients. Source
- Croydon Council is implementing a targeted strategy for Universal Credit payment collections, revealed in November 2025. Source
- Haringey Council faces financial strain, with a report in July 2025 noting a £143 million funding cut and rising Universal Credit claims. Source
- Ealing Council extended free school meal eligibility to all children in households receiving Universal Credit, effective September 2025. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on, with background from Wikipedia. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.