UK Government Reviews Landlord Benefit Deduction System Amid Legal Challenge

The Department for Work and Pensions (DWP) is set to review a controversial program that automatically deducts rent payments from universal credit claimants, following a legal ruling that deemed the system unlawful. This review, led by Work and Pensions Secretary Liz Kendall, comes in response to concerns that automatic deductions, which can take up to 20% of claimants' payments without their consent, may be exacerbating financial hardships for vulnerable individuals. The case prompting the review was brought by Nathan Roberts, who was shocked to find £500 deducted from his benefits amid a dispute with his landlord over property repairs. Kendall emphasized the need for reform, stating her commitment to ensuring fairness and transparency in the benefits system. The review will also explore other deductions, including utility payments, and is part of broader welfare reforms aimed at improving living standards for those reliant on benefits. Additionally, upcoming changes to the Universal Credit Fair Repayment Rate will reduce maximum deductions from 25% to 15%, potentially benefiting around 1.2 million households.