Currently, there are three main agencies in the welfare system:

·         Jobcentre Plus (an agency of the DWP)

·         HMRC (who runs tax credits)

·         Local authorities (who run Housing Benefit and Council Tax Benefit)

In the White Paper published 11/11/10 (Universal Credit: welfare that works), the Government says that "a single organisation will deliver Universal Credit." This organisation will be the DWP. The Paper does not make it clear whether this means the DWP working through its agency the Jobcentre Plus, or the DWP in its own right. But it won't be local authorities who deliver the Universal Credit, except, possibly, for "non-mainstream Housing Benefit cases, (for example, people living in supported accommodation or temporary accommodation)."

In a paper published on this website, Jim Arnold argues a strong case for local authorities to deliver the Universal Credit. In this way, Universal Credit could be delivered at a fraction of the cost of the current £2 billion estimate, he says (click here for his paper). Although it is not too late for this outcome to emerge, the White Paper demonstrates that this is unlikely.

The HMRC, however, will have an important role in the Universal Credit. This is because the Government is particularly keen to introduce "real-time" wages and tax/NI information into the Universal Credit for working applicants. Accordingly, the HMRC is consulting employers on a real-time PAYE system.

It is also possible for local arrangements to emerge. For example, local partnerships between Jobcentres, town halls and voluntary organisations, may help vulnerable people to access the Universal Credit, and to operate the labour market aspect of the new benefit. Interestingly, the consultation paper "21st Century Welfare" says:  "..devolved welfare systems ..can stimulate innovation and…are more aligned to local circumstances.”