Major DWP update for anyone who rents and claims Universal Credit
Major DWP update for anyone who rents and claims Universal Credit
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A new court ruling has confirmed that the Department for Work and Pensions (DWP) needs to drastically change the way it deducts housing costs from Universal Credit payments. The High Court has declared that the automatic approval of landlord requests to deduct money from monthly Universal Credit payments without requiring DWP officials to check with the claimants is "unfair" and "unlawful". The ruling means the benefits department will now need to speak to claimants before taking money out of their payments to give to landlords to cover alleged rent arrears.
The case against the DWP was heard in the courts on January 16, 2025, and was launched by a Universal Credit claimant and rental tenant named Nathan Roberts. In early 2024, he had over £500 docked from his Universal Credit payment at the request of his landlord.
At the time, Nathan - who is a law graduate and former police control room worker - was in a dispute with his landlord over its alleged failure to carry out repairs. Nathan was receiving £1,218 a month from Universal Credit, which included a standard allowance of £364.74, a £459.64 housing component for rental costs, and a £390.06 incapacity top-up for his disabilities.
The landlord told the DWP that he was owed two months of rent, which meant he was at risk of eviction if the arrears grew any more. In these cases, the DWP will take money out of someone's monthly payments to pay the rent and repay the arrears in a bid to stop the debts from increasing. The DWP informed Nathan that he would no longer be receiving his housing component, and a further deduction of £44.74 would be taken on top to clear the rental arrears.
