Controversial benefit deduction system to be reviewed

Powers for landlords to collect unpaid rent from benefit payments are to be reviewed by the government.

Under the current system, landlord requests to deduct money from tenants’ monthly universal credit payments are approved by a computer program automatically.

Up to a fifth of a person’s monthly universal credit payments can be deducted in this way, without them being consulted either by their landlord or the Department for Work and Pensions (DWP).

But earlier this year, tenant Nathan Roberts successfully challenged an automatic benefit deduction in court, and the government has chosen not to appeal.

Instead, work and pensions secretary Liz Kendall has said she wants to overhaul the system so benefits can’t be deducted in this way.

“I am determined to right the wrongs that have persisted in the benefits system for too long,” she said.

“The automatic approval of landlords’ requests for tenants’ benefits to be deducted is one of these.”

System ‘pushing vulnerable people into debt’

The current system was designed to help people avoid issues with their landlords, such as eviction.

However, the government has acknowledged that it “may actually be pushing the poorest into debt”.

The DWP will now look at how it can better protect benefit claimants from falling into debt, while still making sure landlords get the rent they are owed.

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

Social security minister Sir Stephen Timms added: “The benefits system needs urgent reform and we are taking action across the board to do this.”

Support is available  

If you’re falling behind with your rent and debt is mounting up, then we can help.

Try our free benefits calculator to find out if you’re getting all the support you’re eligible for.

Or give us a call and we’ll have a look for you. 

We can also offer you debt advice online and over the phone and help you set a realistic household budget.