The Department for Work and Pensions has been ordered to pay out nearly £400,000 after a Cardiff woman won her claim for race and age discrimination.
Anne Giwa-Amu told the BBC the department was "promoting a culture of racism".
The judge in her tribunal case said she had been a victim of deliberate and intended harassment by DWP staff.
The department said racism is unacceptable and it takes the judgment "very seriously".