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
Samantha Geimer, who was 13 when the director is said to have raped her, asked the court to end her suffering in an "act of mercy".
A report shows the UK's congested roads cost the economy £300 billion a year as councils call on extra funding to help tackle the problem.
Shouts of "we are not afraid" rang out across Barcelona as people gathered to pay tribute to those caught up in the deadly terror attacks.