Black Country and Staffordshire among first in Universal Credit rollout

The Government is bringing in the single benefit, which replaces the six main out-of-work benefits and tax credits, gradually, following pilot schemes in the north.

It will start changing over the first third of benefit claimants, initially single jobseekers, between February and April.

Dudley, Halesowen, Stourbridge, Lichfield and job centres in Birmingham will be among the first wave.

It is part of the government's plan to cap welfare and 'make work pay' so that people are better off in work than on the dole.

Work and pensions secretary Iain Duncan Smith said: "We've already seen remarkable success, with Universal Credit claimants moving into work faster and staying in work longer. As part of our long-term economic plan, people in the West Midlands will have the financial security of knowing that if they work more they will earn more.

"By Spring 2015 Universal Credit will be in a third of the country's Jobcentres as part of the wholesale transformation of the welfare state - providing the country with an economic benefit of £7 billion each year when rolled out."

Universal Credit will initially be open to single jobseekers. People will get one monthly payment instead of several fortnightly ones, which the government says makes the system easier to understand and administer.

However there are concerns that it could put pressure on council and social landlords who will have to chase people for payments that would previously have gone directly into their coffers, rather than to the bank accounts of the claimants.

Wolverhampton Homes expects that Universal Credit will eventually affect around 8,500 of tenants in its 23,000 homes.

There were half a million working age people on benefits in February this year in the West Midlands.

There were 32,235 in Wolverhampton, 30,885 in Walsall, 38,595 in Sandwell and 30,125 in Dudley as well as 8,810 in Cannock Chase, 8,160 in Wyre Forest, 7,780 in Stafford, 6,265 in South Staffordshire in 6,055 in Lichfield.

Wolverhampton Homes is warning of a risk of people falling behind with their payments as they will be responsible for using their benefits to pay the landlord, rather than the money being transferred directly to the housing provider.

Mark Henderson, director of housing, said: "There is a risk to the payment cycle. Some people will have large amounts of money paid each month that they would not have had before because it's currently paid weekly or fortnightly.

"There's a risk of temptation.

"With the initial small numbers we will have the resource to ring people one to one. But as numbers grow that won't be possible."

Universal Credit is already available in almost 100 Jobcentre areas and as of next week will be in all of the North West of England.

The Department for Work and Pensions claims jobseekers are 'already noticing the difference', with recent research showing that claimants 'do more to find work'.