Our research on Universal Credit and rent arrears

We are currently collecting data for March 2025 , which will tell us how arrears have changed over the previous financial year 2024/25.

This survey, collecting data for December 2024, found that:

• The proportion of general needs residents claiming Universal Credit continues to increase, rising from 48% in September to 51% in December.
• Universal Credit claimants continue to be more likely to be in rent arrears than residents paying by other means (48% compared to 28%). However, the proportion in arrears has decreased for all residents compared to previous quarters.
• Universal Credit claimants continue to be in higher levels of arrears compared to residents paying by other means. Average arrears per Universal Credit claimant in arrears was £641, compared to £468 per resident paying by other means.
• There was a total of £58m of arrears on Universal Credit accounts and £23m of arrears for residents paying by other means, both down by 8% compared to September.

This survey, collecting data for September 2024, found that the proportion of residents on Universal Credit in arrears increased. While the proportion of residents paying by other means in rent arrears decreased.

The survey found:

• The proportion of general needs residents claiming Universal Credit increased from 46% in June to 48% in September 2024.
• 54% of residents paying by Universal Credit were in rent arrears in September 2024 (up from 51% in June) compared to 30% of residents paying by other means (down from 36% in June).
• There was a total of £63m of arrears on Universal Credit claimants' accounts, an increase of 11% compared to June. By comparison, there was £25m of arrears for residents paying by other means, a decrease of 19%.
• The average arrears per Universal Credit claimant in rent arrears was £687, compared to £447 per resident paying by other means.
• This represents an increase of 5% and 2% respectively since June 2024.

This survey, collecting data for June 2024, found:

• The proportion of general needs residents claiming Universal Credit was 46%.
• Residents paying by Universal Credit continue to be more likely to be in arrears than tenants paying by other means. 51% of residents paying by Universal Credit were in rent arrears in June 2024 compared to 36% of residents paying by other means.
• Universal Credit claimants continue to be in higher levels of arrears compared to residents paying by other means. The average arrears per Universal Credit claimant in rent arrears was £655, compared to £438 per residents paying by other means.
• In June 2024, there was a total of £57m of arrears on Universal Credit tenants accounts. By comparison, there was £31m of arrears for residents paying by other means.