The program automatically approves landlord requests to deduct up to a fifth of someone’s monthly universal credit payments to cover rent arrears without the claimant being consulted by either their landlord or the DWP.
Judge Mr Justice Fordham described the system as “unfair” and said there was a “real possibility” that DWP agents were making decisions based on the computer program, rather than considering a claimant’s best interest.
The department’s decision comes after they lost a legal challenge in January which was brought by a private tenant whose benefits were deducted and automatically paid to his landlord to cover alleged rent arrears and ongoing rent payments.
The DWP is set to scrap a controversial computer system that has automatically approved benefit deductions from millions of claimants at the request of private landlords.
The decision by the DWP came after a judge ruled the department had not done enough to ensure certain disability benefit recipients incomes were protected in their move to universal credit.
