MPs have raised fears welfare savings promised by the introduction of Universal Credit (UC) could be undermined because of uncertainty as to how the housing element could managed without incurring greater risk and error.

A report issued today by the Commons Work and Pensions Committee finds there is the potential to substantially reduce the amount of fraud and error in the benefits system through the real time linking of tax systems controlled by HM Revenue and Customs and benefits administration Department for Work and Pensions.

The Coalition has claimed a new Whitehall IT system, the Integrated Risk and Intelligence Service (IRIS) would allow officials to cross-check data and provide the sort of safeguards against fraudulent claims as those local authorities currently operate within the existing Housing Benefit (HB) system.