London Daily

Focus on the big picture.
Monday, Sep 15, 2025

Fixed universal credit cuts are unlawful, high court in UK rules

Fixed universal credit cuts are unlawful, high court in UK rules

Victory for four former rough sleepers in Manchester left destitute after DWP deductions to pay court fines
A group of former rough sleepers who were left destitute after the Department for Work and Pensions automatically deducted a third of their universal credit allowance to pay off court fines have won a high court victory.

The department’s blanket deductions policy had left the four highly vulnerable individuals with £52 a week to live on and unable to meet the cost of food and heating or transport to job interviews and medical appointments.

The judge ruled the department was in breach of a law requiring benefits officials to use their discretion to ensure court fines were deducted from universal credit at a rate recognising claimants’ vulnerability and ability to repay.

The case was brought by the housing charity Shelter after it found that former rough sleepers who had moved into settled housing through its Manchester homelessness project were struggling to keep afloat financially because of the high level of deductions.

The department policy required deductions to be imposed at a fixed 30% rate from the monthly allowances of claimants who owed historical court fines – including those issued for begging under the 1824 Vagrancy Act – regardless of individual circumstances.

Shelter argued this put the four people at risk of returning to the streets. All had a long history of rough sleeping, and had variously suffered from substance abuse, mental illness and financial problems. All had received court fines in the past for criminal offences including fare evasion, public order offences and begging.

Mr Justice Kerr agreed that the fixed deductions policy ran contrary to 1992 law, which requires benefits officials to exercise discretion in the amount they deduct for court fine repayments, which can range from a minimum of 5% up to a maximum of 30%.

The ruling means claimants repaying historical court fines who are facing financial hardship – not just rough sleepers – can now ask the the work and pensions department to lower the level of deductions. About 120,000 universal credit claimants are believed to be repaying court fines through deductions.

The department, which argued that the policy was not illegal because claimants could always go to court to seek reduction in the amounts payable, has been granted leave to appeal against the ruling.

Shelter’s chief executive, Polly Neate, welcomed the ruling: “The judge has made it clear that hitting people who are already very poor with such a high repayment rate is counterproductive. We hope the DWP will now change its policy to allow people to pay their fines back at a level which is fair.

“People who’ve lived through the trauma of sleeping rough need a chance to rebuild their lives and feel part of society again.”

The claim was heard together with a case brought by Hackney Community Law Centre involving a claimant (not a former rough sleeper) with multiple long-term health issues who was left unable to properly feed himself due to the deductions policy.

Beya Rivers, a solicitor at the law centre, said: “It is inhumane for universal credit recipients to be put in a position by the government where they are forced to survive without basic necessities, often choosing between essentials such as food and electricity.”

A work and pensions department spokesman said: “We are carefully considering the judgment and our next steps.”
Newsletter

Related Articles

0:00
0:00
Close
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
×