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.
Stephen Timms, minister for social security and disability, 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.”
