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| Universal credit: IDS defends step-by-step approach | Universal credit: IDS defends step-by-step approach |
| (35 minutes later) | |
| Iain Duncan Smith, the work and pensions secretary, has hailed the small-scale launch of universal credit, the government's revolutionary plan to reform the benefits system, insisting the entire system, which integrates at least six different benefits, will be operational across the UK by 2017, the planned completion date. | Iain Duncan Smith, the work and pensions secretary, has hailed the small-scale launch of universal credit, the government's revolutionary plan to reform the benefits system, insisting the entire system, which integrates at least six different benefits, will be operational across the UK by 2017, the planned completion date. |
| Amid suspicions over the reasons for the launch of the system on Monday in the north-west among a small and relatively easy-to-administrate group, Duncan Smith defended his step-by-step approach, saying he had seen how previous ministers had been burned by the launch of schemes such as tax credits. | |
| He said: "I watched the last government crash and burn over tax credits. They did the same with the health department changes. | He said: "I watched the last government crash and burn over tax credits. They did the same with the health department changes. |
| "I've insisted in the department that we do everything through a pathfinder, we do small numbers to begin with. We learn in detail the problems, we slowly build the volumes up. It is a perpetual process of rolling out and checking." | "I've insisted in the department that we do everything through a pathfinder, we do small numbers to begin with. We learn in detail the problems, we slowly build the volumes up. It is a perpetual process of rolling out and checking." |
| But there are concerns over the computer systems, the need for claimants to be paid in monthly lump sums and the sanctions regime that will be imposed on people who are already in work and in receipt of tax credits. | But there are concerns over the computer systems, the need for claimants to be paid in monthly lump sums and the sanctions regime that will be imposed on people who are already in work and in receipt of tax credits. |
| In interviews to mark the launch of the scheme, Duncan Smith said more difficult-to-administer groups, such as the homeless and single mothers, would be tested before the national launch in October. | In interviews to mark the launch of the scheme, Duncan Smith said more difficult-to-administer groups, such as the homeless and single mothers, would be tested before the national launch in October. |
| He was also asked about technical issues such as the inability of claimants to save their application for universal credit online, requiring them to go back to the start of the application process if something goes wrong. The process can take as long as 45 minutes. | |
| He replied: "I am not going to end up into the nitty gritty details of this." He said the system was designed by claimants, and the security of the claim had to be protected. | He replied: "I am not going to end up into the nitty gritty details of this." He said the system was designed by claimants, and the security of the claim had to be protected. |
| Repeating the general case for the scheme – the subject of extraordinary years-long infighting between the Treasury and the Department for Work and Pensions – he said: "This benefit will change the world of work for people. It will ensure that people going back into work part-time etc on their way to full-time work will always be better off in work at any hour, unlike tax credits. It will not be open to as much abuse or fraud as tax credit was … And the key thing is 80% of the value of the changes will go to the bottom 40% of those who are in earnings." | Repeating the general case for the scheme – the subject of extraordinary years-long infighting between the Treasury and the Department for Work and Pensions – he said: "This benefit will change the world of work for people. It will ensure that people going back into work part-time etc on their way to full-time work will always be better off in work at any hour, unlike tax credits. It will not be open to as much abuse or fraud as tax credit was … And the key thing is 80% of the value of the changes will go to the bottom 40% of those who are in earnings." |
| He said the scheme would save billions and defended the new system's online focus: "As we know over 80% of all claimants on welfare are already online, over 85% or so of all homes in that sense are online, so we know that a huge number of them are already using computers and telephones. | He said the scheme would save billions and defended the new system's online focus: "As we know over 80% of all claimants on welfare are already online, over 85% or so of all homes in that sense are online, so we know that a huge number of them are already using computers and telephones. |
| "The second thing is, honestly, 96% of all jobs now require some kind of computer interface, so that means if you cannot go on to a computer you will only be able to apply for 4% of the jobs in Britain." | "The second thing is, honestly, 96% of all jobs now require some kind of computer interface, so that means if you cannot go on to a computer you will only be able to apply for 4% of the jobs in Britain." |
| He said if people had difficulty with the system he would be flexible but defended the monthly payments on the basis that most companies paid monthly now and this would apply to claimants in and out of work. | He said if people had difficulty with the system he would be flexible but defended the monthly payments on the basis that most companies paid monthly now and this would apply to claimants in and out of work. |