MINISTERS will not launch a second appeal to challenge the legal victory of four single mothers over “unlawful” universal-credit rules.

Judges rejected an appeal earlier this week by the Department for Work and Pensions to overturn a decision that certain of its benefit-payment rules were illegal. 

The case was brought by Danielle Johnson who was left fighting to keep her home due to fluctuating universal-credit payments. 

The problem arose from system errors which wrongly interpreted changes in her salary pay date as Ms Johnson earning twice as much in one month and nothing the next. 

The court ruled in favour of the mothers last year but the government appealed on the basis that fixing the computer system would cost at least £7.35 million.

Confirming that the government would not seek a second appeal, Work and Pensions Minister Will Quince sad the department had identified 1,000 claimants affected by the errors and was “now assessing remedial options.”

Work and pensions select committee chairman Stephen Timms said he was grateful that the government had “accepted the inevitable” and not paid out for “even more expensive lawyers” to contest the case.