Work and Pensions Secretary Reviews Controversial Benefit Deduction System

The Work and Pensions Secretary is scrutinizing a contentious system that automatically approves landlord requests to deduct tenants’ benefits for rent arrears and ongoing rent payments.

Concerns have been raised that this system, intended to help tenants avoid issues such as eviction, may actually be pushing the poorest into debt.

This review follows a decision by the Department for Work and Pensions (DWP) not to appeal a court judgment that found one claimant’s landlord payments were unfair.

Currently, computer software automatically approves landlord requests to deduct up to a fifth of a tenant’s monthly Universal Credit payments for outstanding rent repayments without consulting either the tenant or the DWP.

The department will now examine this process and explore better ways to ensure landlords receive the rent they are owed in a fair and proportionate manner while protecting benefit claimants from falling into debt.

This initiative is part of broader efforts by Work and Pensions Secretary Liz Kendall to improve the welfare system.

Kendall stated, “I am determined to right the wrongs that have persisted in the benefits system for too long. The automatic approval of landlords’ requests for tenants’ benefits to be deducted is one of these.”

This decision comes in response to a high-profile legal challenge in January, which was won by Nathan Roberts after his benefits were deducted and automatically paid to his landlord to cover alleged rent arrears and ongoing rent payments, despite a dispute about property repairs.