High Court rules DWP’s Universal Credit deduction scheme unlawful
1 year ago | 38 comments
Government to overhaul landlord benefit deduction scheme
9:30 AM, 26th February 2025, 1 year ago
32
The government is to scrutinise a controversial mechanism allowing landlords to request rent directly from tenants’ benefits.
It follows a story on Property118 and recently in national media about Nathan Roberts successfully challenging deductions from his benefits.
They had been automatically redirected to his landlord for arrears and ongoing rent, despite a dispute over property repairs.
Now Work and Pensions Secretary Liz Kendall says a review will address growing unease that the practice, intended to prevent evictions, might instead be placing tenants into financial hardship.
The decision follows the Department for Work and Pensions (DWP) choosing not to appeal the court ruling.
Under the current setup, a digital system greenlights landlord applications to withhold up to 20% of a claimant’s monthly Universal Credit without input from either the tenant or the DWP.
This has sparked concerns over fairness and transparency.
Approval of landlords’ requests
Ms 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.”
She added: “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.
“We will continue to listen to people’s concerns, and transform our benefits system to one of fairness, not punishment.”
Benefits system needs reform
The Minister for Social Security and Disability, Sir Stephen Timms, said: “The benefits system needs urgent reform, and we are taking action across the board to do this – whether that’s tackling the huge accumulation of debt by Carer’s Allowance recipients through no fault of their own, or this automatic deduction of benefits purely at the request of a landlord.
“Combined with our efforts to Get Britain Working and our upcoming health and disability benefits reform, all of this will lead to better support for those who need it, and open doors for those who can work.”
The DWP says it now plans to explore alternatives, ensuring landlords receive due payments while safeguarding claimants from spiralling debt.
Tags:
DWP landlord payment review, Landlord benefit deductions UK, Liz Kendall welfare changes, Tenant debt protection UK, Universal Credit reform 2025, Universal Credit repayment rate
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Member Since September 2024 - Comments: 33
1:44 PM, 15th March 2025, About 1 year ago
Thank you for your comments. However, I am seeking justice from a system that has fostered a manipulative environment, allowing tenants to take advantage of it. There is a complete lack of trust in both the judicial system and the current political party in power
Member Since March 2023 - Comments: 1506
5:59 PM, 15th March 2025, About 1 year ago
Reply to the comment left by Jagdish Patel at 15/03/2025 – 13:44
The judicial system has little to do with CCJs, once granted they are very effectively managed by the credit reference agencies (I used to work for one so I know how they work). You won’t get your money and that’s not the fault of the judicial system as if the tenant doesn’t have a pot to piss in then the judicial system can’t make him pay. It IS however the fault of the judicial system that you can’t get him evicted in a reasonable time.
Member Since September 2024 - Comments: 33
2:28 AM, 16th March 2025, About 1 year ago
Thank you, GlanAcc, and apologies for the confusion. Could you please clarify? Filing for a CCJ seems like a significant cost for me, especially since there’s £28k outstanding, plus court fees. I feel that applying for it might just result in wasted money if the court isn’t able to recover the funds from the tenant. What would you suggest?
Member Since May 2015 - Comments: 2188 - Articles: 2
6:28 AM, 16th March 2025, About 1 year ago
Reply to the comment left by Jagdish Patel at 16/03/2025 – 02:28
Jagdish, the idea of a CCJ is to screw up the financial life of the tenant. You may consider that a £35 court fee for a £300 claim is a small price to pay to ensure that your tenant will suffer financially for at least six years.
Member Since September 2024 - Comments: 33
7:24 AM, 16th March 2025, About 1 year ago
Reply to the comment left by TheMaluka at 16/03/2025 – 06:28
Thanks Maluka what if the Tenant makes a payment of the small amount and clears their name ?
Member Since May 2015 - Comments: 2188 - Articles: 2
8:39 AM, 16th March 2025, About 1 year ago
Reply to the comment left by Jagdish Patel at 16/03/2025 – 07:24
Well in my experience of over 30 years and in excess of 1000 tenancies I have NEVER had a tenant discharge a CCJ. But if the unlikely happened then merely spend another £35 to put the tenant back where he started, after all you will have had £335 from the tenant to satisfy the first CCJ.
Member Since September 2024 - Comments: 33
8:45 AM, 16th March 2025, About 1 year ago
Right so what you are saying is that i can apply for CCJ multiple times and is not a one time only claim for the same tenant ?
Member Since May 2015 - Comments: 2188 - Articles: 2
9:13 AM, 16th March 2025, About 1 year ago
Reply to the comment left by Jagdish Patel at 16/03/2025 – 08:45
As long as the tenant is in debt to you, it is possible to make a claim. Be wary of claiming for the same money twice.
A tenant who owes you £28k can have circa 90 £300 claims.
Member Since September 2024 - Comments: 33
9:44 AM, 16th March 2025, About 1 year ago
Reply to the comment left by TheMaluka at 16/03/2025 – 09:13
Thank you for your comment. Could you please clarify what you mean by “Be wary of claiming for the same money twice”? I’m not making duplicate claims; instead, I’m attempting to recover the outstanding amount in smaller installments.
For example, a tenant who owes £28k could have around 90 claims of £300 each
Member Since May 2015 - Comments: 2188 - Articles: 2
10:09 AM, 16th March 2025, About 1 year ago
Reply to the comment left by Jagdish Patel at 16/03/2025 – 09:44
If you have claimed £300 from a tenant who owes £500, you must not claim more than a further £200.