Advising a social tenant with rent arrears
Guide for professionals
Maximise income
Identify potential income sources that could improve finances and help pay rent arrears.
Helping the tenant maximise their income could mean that they can:
negotiate a repayment plan
make one-off payments
manage payments more effectively
This could mean they can clear rent arrears more quickly.
Complete a benefit check
The tenant may be eligible for benefits which can increase their household income. Use a benefit calculator to check the tenant's entitlement and support them in applying for any unclaimed entitlement.
If the tenant is subject to the benefit cap, they will not be able to increase their income through benefits.
Read more about benefits and grants at Shelter Legal.
Consider long term options to deal with benefit deductions
If the tenant's income is reduced because of deductions or benefit overpayments, a long-term debt solution could help to increase income.
A debt solution can write off debts that affect income. For example, a debt relief order could write off a benefit overpayment and lead to an increase in monthly income.
Read more about debt solutions for benefit deductions at Shelter Legal.
Check income
If the tenant is working, check:
if their pay or hourly rate is correct
they do not pay too much tax
there are no unexpected deductions
Ask the tenant to provide payslips.
Check if the bedroom tax applies
The bedroom tax is a reduction in housing benefit where the tenant is not occupying all of the bedrooms in the property
Some people are exempt from the bedroom tax. For example, bedroom tax only applies if the tenant or their partner receives universal credit or housing benefit and are of working age. Someone is of working age if they are between 16 and pension age.
Read more about bedroom tax on Shelter Legal.
Explore additional income sources
Discuss the tenant's circumstances with them and explore any potential sources of income.
Some options include:
renting out a room
financial contributions from other people in the household
charitable grants
You can search for charitable grants at Turn2Us.
Make sure the tenant is aware of tax implications and has the necessary permissions. For example, renting out a room could require permission from the landlord.
Read more about the government's rent a room scheme at gov.uk.
Changes to income can have a knock-on effect for benefits, pensions or tax. Ensure the tenant understands and seeks financial advice if required.
Help the tenant apply for a discretionary housing payment
Try to reduce the arrears with helping the tenant apply for a one-off discretionary housing payment (DHP).
Discretionary housing payments are usually only awarded for a limited time and the tenant may need to apply again.
Discretionary housing payments can be used to clear arrears or cover a shortfall between housing element of universal credit and the rent. It is a short term solution and is awarded at the discretion of the local authority.
Check tenant's eligibility
To apply for a DHP the tenant must receive housing benefit or housing element of universal credit.
Gather evidence
The local authority usually requires the tenant to provide:
evidence of rent arrears
details of income and expenditure
wage slips or bank statements
Support the tenant to gather the evidence and submit the application. Applications usually take at least four weeks to be reviewed.
Check the local authority's website for any specific requirements.
Read more about discretionary housing payments at Shelter Legal.
A discretionary housing payment is not a permanent solution. The local authority will want evidence that the payment will help to sustain the tenancy long term.
Last updated: 9 November 2025