Automatic rent deductions from benefits under review after legal challenge – DWP

Powers for landlords to collect rent from benefit payments are set for review, as announced by Work and Pensions Secretary Liz Kendall. 

The current system, which automatically approves landlord requests to deduct up to 20% of a tenant’s monthly Universal Credit for rent arrears without consulting the tenant, is under scrutiny. 

The move follows a court ruling where Nathan Roberts successfully challenged the deductions made to his benefits over alleged rent arrears tied to unresolved property repairs. 

Kendall confirmed that the Department for Work and Pensions (DWP) will not appeal this decision.

Kendall said: “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.

“As well as urgently reviewing this system, I am bringing forward major changes to the health and disability benefits system so that it works for everyone, underpinned by the biggest employment reforms in a generation.”

Kendall added: “We will continue to listen to people’s concerns, and transform our benefits system to one of fairness, not punishment.