Powers for landlords under review

A controversial system allowing landlords to deduct rent payments directly from tenants’ benefits is under review. Work and Pensions Secretary Liz Kendall has pledged to right the wrongs of the system, which has been criticised for pushing vulnerable people into debt. Currently, a computer program automatically approves these deductions, often without consulting tenants.

This review follows a legal case won by Nathan Roberts, whose benefits were deducted without his consent to cover alleged rent arrears despite an unresolved dispute over property repairs. The Department for Work and Pensions has decided not to appeal the ruling.

Liz Kendall stated she is determined to correct longstanding issues in the benefits system, including the automatic approval of landlords’ requests. She also reaffirmed the government’s commitment to wider welfare reforms, including changes to health and disability benefits.

Minister for Social Security and Disability Sir Stephen Timms said the government is taking action to reform the benefits system across multiple areas. He noted that alongside the review, steps are being taken to address debts accumulated by Carer’s Allowance recipients and improve support for those in need.

In April, the Universal Credit Fair Repayment Rate will come into force, reducing the maximum deductions from benefits from 25% to 15%. This change is expected to help around 1.2 million households keep more of their Universal Credit payments, with an estimated average annual benefit of £420 per household. The review is part of broader efforts to ensure the welfare system supports economic growth and improves living standards.

Copyright & permissions