part iii This ties in with our objective to reduce the number of agencies administering benefit. By simplifying the benefits system, there need only be one agency administering benefits, and only one payment to individuals. It is important to ensure that any benefit change aids the roles of welfare-towork providers. These providers connect claimants back to the labour market. In-work and out-of-work support have historically been managed as separate regimes, partly in deference to the role these providers play. 16.2.2 Payments made in full 5. All Universal Credits would be paid directly to claimants in full, who would then be responsible for all household outgoings, including rent and Council Tax.
As has already been seen with the introduction of the Local Housing Allowance scheme, this approach creates an incentive for the individual to pay for housing more effectively than the state, because there would be a meaningful reward for claimants to economise on their housing. We also think it would encourage independence and personal responsibility. For the small number of people who are unable, because of physical or mental incapacity, to pay their bills, special arrangements can be made to have rent and council tax paid directly at source. 16.2.3 Payments withdrawn by PAYE 6. For those in work, the withdrawal of Universal Credits would be administered through the PAYE system, with employers withholding payments in a similar way to Tax and NI, but on an instantaneous (not cumulative) basis.
For self-employed workers, there would need to be a simplified system for them to pay back a proportion of their earnings as withdrawn benefits. This system should be simpler than the regime that exists today. Those with multiple jobs can split their disregards across their different employers, but they would be liable for withdrawal of the total benefits from both employers. Hence, there would need to be a reconciliation process, so that any over-withdrawal can be returned to claimants. We would encourage the DWP to set up an easy-to-use benefits calculator to allow low earners to work out how far benefits should be withdrawn, and when they should claim back.
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