A National Audit Office report has warned plans to localise Council Tax Benefit (CBT) decisions risks creating variation between councils, hindering efforts to co-ordinate work incentives, a key plank of Iain Duncan Smith's flagship Universal Credit programme timetabled for 2013.

The spending watchdog cites the unintended consequences of the move among other examples showing a lack of accountability and co-ordination for means-testing benefits across government departments.