The Work and Pensions Secretary is examining a controversial system that automatically approves landlord requests to deduct tenants’ benefits to pay rent arrears and ongoing rent.

It comes amid concerns that the system – aimed at helping people avoid issues with their landlords such as eviction – may actually be pushing the poorest into debt.

This follows a decision by the Department for Work and Pensions (DWP) not to appeal court judgement which found one claimant’s landlord payments were unfair.

Currently, computer software automatically approves landlord requests to deduct up to a fifth of someone’s monthly Universal Credit payments for outstanding rent repayments without them being consulted by either their landlord or DWP.

The department will now look at this process and consider better ways of ensuring landlords get the rent they are owed in a fair and proportionate way while benefit claimants are protected from falling into debt.

It comes as part of wider efforts by the Work and Pensions Secretary Liz Kendall to improve the welfare system.

She said: “I am determined to right the wrongs that have persisted in the benefits system for too long. The automatic approval of landlords’ requests for tenants’ benefits to be deducted is one of these.”

This decision comes in response to a high-profile legal challenge in January, which was won by Nathan Roberts after his benefits were deducted and automatically paid to his landlord to cover alleged rent arrears and ongoing rent payments – despite a dispute about repairs to the property.