The Department of Work and Pensions (DWP) is reviewing its automated deduction program for universal credit after a ruling revealed it was unlawful to deduct funds without tenant consent. This program, which has deducted around £479 million from claimants since 2017, allows the DWP to automatically reduce up to 20% from universal credit payments due to rent arrears. Liz Kendall, the work and pensions secretary, aims to address the issues stemming from this controversial system, following a case by tenant Nathan Roberts who was deducted £500 without prior notification.
The legal ruling has prompted the DWP to review its automated deductions from universal credit payments, highlighting issues of consent and fairness in the treatment of claimants.
Liz Kendall emphasized the need to 'right the wrongs' of the deduction system, which has seen millions unjustly affected by automatic rent payment deductions.
Tenant Nathan Roberts' case has shed light on the lack of consultation involved in the DWP's deduction process for rent arrears since universal credit's initiation in 2013.
Since 2017, 10.3 million deductions totaling £479m have been made from claimants’ universal credit payments, stirring controversy over the program's legality and ethics.
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