By Lauren Creasey, Product Manager, allpay Limited
Payment collection might not be the most visible part of housing operations, but when it runs smoothly, everything else does too.
Direct Debit continues to be the most trusted and widely used method for recurring payments in the UK, with over 4.7 billion payments processed in 2023, totalling £1.5 trillion in value. A recent allpay survey found that Direct Debits were the most preferred method of payment in the social housing sector with 40% using it to pay their rent. Its reliability is well established, but the demands placed on housing providers today call for more than just reliability. They call for flexibility, automation, and a better experience for tenants and teams alike.
That’s why recent enhancements to allpay’s Direct Debit service have focused on giving housing providers more control, more options, and more ways to support tenants, without adding complexity.
Enhancements that make a difference
The core Direct Debit service now includes a suite of optional enhancements designed to reduce admin, improve cash flow, and keep tenants engaged.
Online Presentment enables tenants to set up Direct Debits themselves, securely and at their convenience. This reduces pressure on contact centres and supports digital self-service strategies. Reduced Advance Notice (RAN) shortens the notice period for changes to as little as five working days, enabling faster collections and more responsive cash flow management. When payments fail, Representment automatically retries them up to two times, helping to reduce arrears and avoid the need for manual reprocessing. Meanwhile, Email Notifications keep tenants informed in real time, whether it’s an upcoming payment, a failed attempt, or a change to their schedule. This improves transparency and reduces missed payments, while also supporting paperless initiatives.
These enhancements are already delivering measurable results. A recent campaign with Jigsaw Homes Group saw 4,499 tenants switch to email notifications, saving £5,635 per print run and preventing 28.11kg of paper waste, all without additional cost.
Two models, one goal: simplicity
The Direct Debit service is available in two models to suit different operational needs.
Bureau Service is designed for organisations with their own Service User Number (SUN), this Bacs-accredited bureau handles submissions, reporting, and compliance, all accessible via a 24/7 portal. Facilities Managed is ideal for those without a SUN, this fully managed service handles everything from issuing a SUN to managing collections and compliance.
Both models are designed to offer flexibility, full Bacs compliance, and onboarding in as little as five weeks.
Supporting tenants with Payment Holidays
In times of financial pressure, offering flexibility can make a significant difference. Payment Holidays, also known as rent-free weeks or payment breaks, allow temporary pauses in Direct Debit collections without cancelling the mandate. Once the break ends, payments resume automatically.
This feature is particularly useful during seasonal periods or when supporting tenants through short-term hardship. Payment Holidays can be applied individually or in bulk, with real-time visibility and automated notifications to ensure clarity for both staff and tenants. The result is a more compassionate, controlled approach to payment management.
A smarter way forward
As housing providers continue to navigate rising costs, increased arrears, and growing tenant expectations, the role of payment systems is evolving. It’s no longer just about collecting rent, it’s about doing so in a way that’s efficient, transparent, and tenant friendly.
With the right tools in place, Direct Debit becomes more than a payment method. It becomes a strategic asset, one that supports operational resilience, improves tenant engagement, and frees up teams to focus on what matters most.
