Fixed universal credit cuts are unlawful, high court in UK rules
March 19, 2021, 12:10 pm

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

Rough sleepers in London.

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.”

source: Patrick Butler

Levant

Dominic Raab 'totally misunderstands' Northern Ireland Brexit terms, warns EU Can Egypt-Turkey ReconciliationMake theDisturbed WatersSleep?

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.