London council chiefs have hit out at the ‘lack of clarity' over  plans for how welfare support services are to be delivered and funded once Universal Credit is introduced.

The concerns were raised in reaction to today's publication by the Commons Work and Pensions Committee into the future role of the Jobcentre Plus (JCP) network once the Coalition's flagship welfare reforms are fully implemented.

MPs on the panel concluded the national JCP network should continue offering a public employment service for the unemployed.

But the Committee also recommended that the Department for Work and Pensions should revise the JCP's key performance indicators so officials are incentivised to place claimants in sustainable jobs, and not simply get them off benefits.

Chair of the Work and Pensions Committee, Dame Anne Begg, said people could leave benefit for many reasons, not all of which were positive and could include being sanctioned or merely transferring to another benefit.

‘We believe this risks JCP hitting its targets but missing the point.  JCP must be very clearly incentivised to get people into work, not just off  benefits,' Dame Begg said.

Responding for the London Councils umbrella group, Cllr Peter John, executive member for skills and employment said:  ‘The committee has highlighted that there is a lack of clarity about how support services will be delivered and funded, once Universal Credit has been rolled out.

He said London Councils supported reform of the welfare system, but remained concerned that this uncertainty would impact on vulnerable claimants.

‘It is high time central government recognises that councils, with their strong links with employers, should be at the heart of providing welfare to work services,' Cllr John added.