The High Court has ruled that the Department of Work and Pensions acted unlawfully by making deductions from a tenant’s Universal Credit payments to his landlord without first consulting him – a decision which could impact thousands of other claimants.

The DWP made the deductions from Mr Roberts’ Universal Credit in March 2024 following an application by his landlord.

At the time, he was engaged in a dispute about his liability for rent, and a date for him to move out of the property had been agreed.

The DWP later refunded Mr Roberts and admitted that these payments were taken in error.

Lawfullness

However, Mr Roberts continued to challenge the lawfulness of the policy that impacts thousands of similar deductions made each year relating to ongoing rent payments and towards rent arrears, explains his solicitor, Emma Varley at Bindmans (pictured).

She says this is an important judgment which confirms that it was unfair of the DWP to make deductions from her client’s benefit without first asking him what he thought. Varley adds: “This judgment should lead to fairer, and better, decision-making by the DWP.”

The judge said: “It being recognised that the UC-claimant may have something to contribute, the decision-maker may be deprived by the process of information which could be about: whether the rent is payable, whether it has been paid, whether there is some related dispute, whether a statutory precondition or policy guidance criterion is unmet, whether holding off or deferring may for some identifiable reason be in the UC-claimant’s actual best interests, whether there is or is not in fact a risk of eviction, whether the UC-claimant has plans to leave the accommodation or something else.

“The decision-making process allows information to be elicited unilaterally from someone – a landlord – with an interest which may not align with the interests of the UC-claimant; giving one side of a story.”