The Department for Work and Pensions (DWP) is set to abandon a controversial automated system that has approved benefit deductions for millions of claimants at the request of private landlords.

Work and Pensions Secretary Liz Kendall has pledged to “right the wrongs” of the deduction system after a judge ruled last month that the program used by the department was unlawful. The system has processed tens of thousands of deduction requests annually, with a total of approximately 10.3 million deductions amounting to £479 million since 2017, according to data obtained by The I.

The automated program allowed landlords to request deductions of up to a fifth of a claimant’s monthly universal credit payment for rent arrears without notifying the claimant or obtaining their consent. The DWP’s decision to scrap the system follows a legal challenge brought by tenant Nathan Roberts, whose benefits were deducted and paid directly to his landlord for alleged rent arrears. At the time, he was also in a dispute over property repairs.

Judge Mr Justice Fordham described the system as “unfair” and highlighted concerns that DWP agents were relying on the program rather than making independent decisions in the claimant’s best interest.

The DWP has now committed to reviewing the entire process to ensure that landlords receive owed rent in a manner that is fair and does not push claimants further into debt. In a statement, the department acknowledged that while the system was intended to prevent eviction, it may have instead been exacerbating financial hardship for vulnerable individuals.

Liz Kendall emphasized her commitment to overhauling the benefits system, stating, “As well as urgently reviewing this system, I am introducing major changes to health and disability benefits to ensure they serve everyone fairly, supported by the biggest employment reforms in a generation.” She added that the government remains committed to listening to concerns and transforming the welfare system into one based on fairness rather than punishment.

Emma Varley, a lawyer at Bindmans who represented Mr. Roberts, welcomed the DWP’s response, calling it a “positive—if overdue—step.” She stressed that the need for better decision-making within the DWP can no longer be ignored.

Earlier this month, it was revealed that around 57,000 benefit claimants are set to receive compensation averaging £5,000 each after a judge ruled that the DWP had failed to protect certain disability benefit recipients’ incomes during the transition to universal credit.

In response to Mr. Roberts’ case, the DWP refunded his deductions, admitting they had been taken in error. However, the department has so far only confirmed that it is reviewing the system.