Coalition ministers should use the introduction of Universal Credit (UC) to put local authorities in the driving seat for welfare reform, council chiefs have urged.

A study issued today by London Councils – the umbrella organisation for all 32 London boroughs and the City of London – calls for locally-led wrap around services to help residents manage the online monthly single payment system and the transition to work.

Although additional support services are set to be laid on for vulnerable claimants, London Councils' report, entitled ‘Towards a new model of welfare' argues these services should be integrated with local employment schemes.

Just under a million Londoners, an estimated 850,000 residents, are likely to receive UC which amalgamates six different benefits into one, which claimants manage online.

However, the troubled flagship coalition welfare programme is becoming further mired by technical delays and cost overruns.

Ahead of last year's Autumn Statement, drastically revised forecasts for UC's introduction were issued.  There are now expected to be 400,000 UC claimants in 2015/16 – rather than the previously forecast 4.5 million people in receipt of six amalgamated means-tested benefits.

Most claimants would be migrated over to the single monthly UC payment between 2016 and 2017. 

‘Boroughs, which have an understanding of local labour markets and strong links with community organisations, are best-placed to help their residents do that,' said chair of London Councils, Hackney Mayor Jules Pipe.

‘I urge central government to use the implementation of Universal Credit as an opportunity to put local councils at the heart of  getting people back to work, he added.