Friday, 14 October 2011

Universal Credit Puts 20,000 Jobs 'At Risk'

Thousands of housing benefit jobs could be at risk if government plans to introduce universal credit are implemented. Unison, a public service trade union, said that up to 20,000 housing benefit administration jobs could be axed in England, Wales and Scotland if plans in the Welfare Bill are voted through. The union also warned that millions of pounds could also be wasted in compensation. Unison said that currently 21 per cent of housing benefit services are provided through private contractors or shared service arrangements with other authorities. The union argues that if the bill goes through, local staff offering face to face advice will be replaced by call centres and online forms. It said that this could lead to councils paying around £50 million a year for a service they do not need as contracts with private companies will still be in place when universal credit is due to be introduced in October 2013. The union warned there could also be a redundancy bill of around £150 million as there is no provision in the bill for staff to transfer from councils to the Department for Work and Pensions. Read more on the Unison website.

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