Job losses feared as Universal Credit roll-out set for May

Fears of job losses at local authorities have been raised after news that the Universal Credit welfare benefit will be rolled out nationally from next May.

UC was launched two years ago to replace six means-tested benefits and tax credits - jobseeker's allowance, housing benefit, working tax credit, child tax credit, employment and support allowance and income support.%VIRTUAL-ArticleSidebar-jobs-guide%

Work and Pensions Secretary Iain Duncan Smith said the need for local authorities to administer housing benefit for working age people will progressively reduce.

No transfer arrangements are being planned for local authority staff currently working on housing benefit.

"The phased nature of this process means that the impact on local authorities can be managed in a way which minimises the need for any redundancies.

"Where this does not prove possible, after the exercise of all reasonable efforts to redeploy people, the Department has given local authorities a commitment that we will meet their costs of any residual redundancies," said the minister.

The Government said earlier this week that people on UC were significantly more likely to move into work than those on jobseeker's allowance.

UC is now available in over 550 jobcentres, three-quarters of the total.