I can reassure my hon. Friend that the pilot projects are designed precisely to establish whether those concerns are justified or not. Members representing the five areas involved will have received a letter about the projects from the Department for Work and Pensions. Paying tenants directly eases the transition into work, and is already happening in most cases in the private rented sector.
I believe that some 20,000 local authority employees are currently involved in the delivery of housing benefit. What will happen to them when housing benefit is absorbed into universal credit in 18 months’ time?
In October 2013 a start will be made on the transfer with new claimants, and there will then be a progressive integration until 2017. There will be a series of steps as claimants move to universal credit. The demonstration projects will assess all aspects of the delivery of the scheme, and will be reported on to the House in due course.