White Paper on Universal Credit

Written Evidence Submitted by Carl Lamb

1.0 Summary

1.1 The briefing below looks at the localism with the proposed Universal Credits System and poses the question: Should Housing Benefit remain a local benefit or can Local Authorities play a greater role in the administration of Universal Credits.

2.0 A greater Role for Local Authorities?

2.1 While I fully applaud the objectives of the new Universal Credit, why is it being administered by Central Government? Removing Housing Benefit from local authority control and centralising it within DWP goes completely in the face of localism. Why can't councils process Universal Credit? Councils are best placed to understand local needs, local people and deliver local services that customer’s value. They have demonstrated over the last 5 years that they are actually very good at processing benefit claims (just compare their performance with DWP and HMRC) as well as delivering customer focused services based on true consultation with customers and stakeholders.

2.2 There is also the argument that Housing Benefit is in fact a local benefit and should remain as such. Taking away the link between local housing costs and the amount of housing benefit is misguided. This will only lead to further homelessness and less confidence in the system form landlords, withdrawing from the HB market. Also what happens to direct payments to landlords under a new system? How does this fit with Universal credits?

2.3 Local authorities have worked very hard to improve links with landlords, social providers, tenants etc and developed local policies around landlord accreditation, homelessness strategies and joined up services with third sector partners (For example our council has staff based at the three major social landlords within the area to process claims when tenants first sign up for their tenancy). Housing benefit plays a major part in these very local issues.

2.4 Many councils are streets ahead of DWP in terms of innovation and delivering tailored service. My Council already take new benefit applications over the web. These are then integrated with back office systems, saving significant time and money. They also offer tailored services for different segments of society. For example, a face to face appointment service is available for customers to have their claim processed there and then. This eliminates waste through repeat contact and ensures claims are processed the same day, giving landlords confidence and preventing hardship and eviction. A similar service is delivered via visitors for people that are vulnerable, taking away barriers to claiming benefit.

2.5 I believe that localisation of Universal credit would have been the truly radical and progressive option and only fear that we will end up with a remote, less accountable and highly rigid ‘one size fits’ all service. Just look at the lack of innovation and the lack of local discretion available within the Pension Service and Jobcentre Plus.

2.6 I guess the main question is how does Universal Credit fit into the Localism Bill and the DWP business plan which clearly states ‘it will not hold onto power ineffectively and will seek to devolve power to local communities where appropriate’?

December 2010