University graduate Cait Reilly's successful appeal was made by Lord Justice Pill, Lady Justice Black and Sir Stanley Burnton.
In November 2011, Miss Reilly had to leave her voluntary work at a local museum and work unpaid at the Poundland store in Kings Heath, Birmingham, under a scheme known as the "sector-based work academy".
She was told that if she did not carry out the work placement she would lose her jobseeker's allowance.
For two weeks she stacked shelves and cleaned floors.
More top news
Caitlyn Jenner insists she said "so many nice things about Kris" in her new memoir which chronicles the history of their relationship.
Detectives are investigating whether a 30-year-old man in Taunton died after taking 'spice', Avon and Somerset Police said.
Morgan Ackerman, 16, was playing "knock, knock ginger" with two friends when he ran out into the road and into the path of a taxi.