Difficulties paying your rent
Hardship fund to support council tenants with rent increases
From 6 April 2026, council rents increased by 4.8% in line with the government cap. For most tenants, this means an average increase of £6.70 per week.
To help residents who may struggle with this change, we have introduced a Hardship Fund. It is not a long-term benefit, but temporary support to help residents most in need to manage costs, stabilise their finances, and prevent rent arrears.
Am I eligible?
The fund is open to secure council tenants who:
- pay their rent themselves (self‑payers), and
- are not receiving Housing Benefit, Universal Credit, or Pension Credit
You must also meet all the following criteria:
- total household income of £60,000 a year or less (before tax). This includes partner income and other adults living in your home
- savings of £6,000 or less
- be experiencing financial hardship linked to the rent increase.
Tenants who under‑occupy their home are not eligible unless the property has been adapted due to disability.
How much support could I receive?
If your application is successful:
- a payment will be made directly into your rent account
- the amount will match your personal rent increase, covering 6 months.
For example:
- an average rent increase of £6.70 per week would mean a credit of around £174 for the six‑month period
This credit can help reduce existing arrears or prevent arrears from building up.
When can I apply?
The Hardship Fund operates in application windows during the year in July 2026, October 2026 and January 2027.
Each application window lasts 6 weeks.
Funds are allocated on a first come, first served basis. If all funding is used in the first two windows, the scheme may close early.
Tenants can only make one application per financial year. This may be reviewed if funding remains after the first two windows.
How to apply
Applications can be made using the online form.
Support is also available if you need help:
When you apply, you will need to upload documents such as:
- proof of income
- evidence of savings
- relevant invoices or bills
- a signed declaration confirming your circumstances.
All information is uploaded securely and reviewed confidentially.
What happens after I apply?
Applications are checked by the Income and Financial Inclusion Team, and you will be provided with outcome within 20 working days of the application window closing. This may take longer during periods of high demand.
If you are not eligible
If you do not meet the criteria for the Hardship Fund, you will be referred to other support, including:
- Discretionary Housing Payments
- Crisis and Resilience Fund
There may also be other benefits you can claim, such as disability or caring benefits.
We provide a free online benefits calculator to help you check what you may be entitled to.
Tenants with high rent account credit balances may be referred to the Rent Accounts Team for advice and, where appropriate, a refundable credit to support household costs.
Need help or advice?
If you are worried about paying your rent or managing day‑to‑day costs, help is available.
You can:
Visit the Cost of Living webpage for more information.
What happens if I fall into rent arrears?
You may fall into rent arrears if you:
- pay late
- pay too little
- miss a payment
We take rent arrears very seriously. While we give every consideration to residents who are in genuine difficulty, our first priority is to collect all rent due, so we can provide the services you need.
If you owe rent, we advise you pay as quickly as possible, ideally in one payment that clears the whole amount. If you can't do this, please contact us.
Our Income Team can give you advice and try to help you find a way to solve the problem, including setting up a realistic and affordable payment plan, or referring you to an independent local advice agency.
What to do if you get a rent arrears letter
I have received a Notice of Seeking Possession, what do I need to do?
“Your weekly rent is due every Monday and must be paid in advance, as stated in your tenancy agreement. If you’d prefer to pay every two weeks or monthly, contact the Income Team at rents@towerhamlets.gov.uk. We can help you set up a Direct Debit so your payments are always on time.
I have received a court hearing letter, what do I need to do?
If you receive a court hearing letter, please contact the Income Team or email rents@towerhamlets.gov.uk to request a telephone or office appointment.
If you are struggling to manage your finances, it is important to contact our specialist Income Team. They can help you access support and maintain your tenancy.
I have received an eviction Letter, what do I need to do?
If you have received an eviction notice, contact our Income Team immediately to discuss the next steps in the arrears process.
We also recommend seeking advice from local legal centres about your rent arrears and options to help you keep your tenancy. Eviction is always a last resort, so please reach out to us first if you are struggling to pay rent or service charges.
Awaiting a claim for benefits?
If you have applied for benefits and awaiting a decision, you are responsible for making all rent and service charge payments whilst your claim is being processed.
Never ignore the problem
It will not make it go away. Ignoring your arrears may result in legal action, court costs or even losing your home. Think of us when you fall into arrears. We are here to help.
Contact us as soon as possible to talk to a member of the Income team, who will work with you to help find a way to solve the problem.