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| Troubled universal credit scheme rolled out in north-west England | Troubled universal credit scheme rolled out in north-west England |
| (about 2 hours later) | |
| The work and pensions secretary, Iain Duncan Smith, has defended his troubled universal credit programme as it is rolled out to families across north-west England. | The work and pensions secretary, Iain Duncan Smith, has defended his troubled universal credit programme as it is rolled out to families across north-west England. |
| The scheme, which merges six benefits into a single payment, has been dogged by delays and about £130m has been written off, largely because of IT problems. | The scheme, which merges six benefits into a single payment, has been dogged by delays and about £130m has been written off, largely because of IT problems. |
| However, Duncan Smith said on Tuesday the cost of implementing the welfare programme was justified – which would be confirmed by a forthcoming report from the National Audit Office, which has previously raised concerns. | However, Duncan Smith said on Tuesday the cost of implementing the welfare programme was justified – which would be confirmed by a forthcoming report from the National Audit Office, which has previously raised concerns. |
| Speaking to the BBC, he criticised the “utterly negative” response to the scheme in some quarters. “The programme, I believe, is value for money,” he said. “And the most important thing is there are no plans to spend any more money than we originally set out.” | Speaking to the BBC, he criticised the “utterly negative” response to the scheme in some quarters. “The programme, I believe, is value for money,” he said. “And the most important thing is there are no plans to spend any more money than we originally set out.” |
| The cabinet minister said the decision to slow the programme had been taken a couple of years ago but it was back on track. “We had an independent review the other day by the Major Projects Authority and they said this is not only working, but it’s the right way to roll out and all other government programmes would probably be best doing it this way,” Duncan Smith said. | The cabinet minister said the decision to slow the programme had been taken a couple of years ago but it was back on track. “We had an independent review the other day by the Major Projects Authority and they said this is not only working, but it’s the right way to roll out and all other government programmes would probably be best doing it this way,” Duncan Smith said. |
| The Department for Work and Pensions (DWP) said about one in three jobcentres would offer universal credit to new claimants by spring as part of a scheme that would eventually boost the economy by £7bn a year and help 300,000 households find work. | The Department for Work and Pensions (DWP) said about one in three jobcentres would offer universal credit to new claimants by spring as part of a scheme that would eventually boost the economy by £7bn a year and help 300,000 households find work. |
| It said an analysis of 1,000 of the first universal credit claimants found they spend 29 hours a week looking for work rather than 16 hours under the jobseeker’s allowance scheme. | It said an analysis of 1,000 of the first universal credit claimants found they spend 29 hours a week looking for work rather than 16 hours under the jobseeker’s allowance scheme. |
| However, in October, it was revealed that only 14,170 claimants – mainly single people or childless couples – were receiving universal credit. It is estimated that this will rise to 100,000 by May and 500,000 by May 2016. | However, in October, it was revealed that only 14,170 claimants – mainly single people or childless couples – were receiving universal credit. It is estimated that this will rise to 100,000 by May and 500,000 by May 2016. |
| The DWP says by 2017 all new claimants, whether with children or not, will be signed up to universal credit, but no date has been set for existing benefit claimants to be transferred. | The DWP says by 2017 all new claimants, whether with children or not, will be signed up to universal credit, but no date has been set for existing benefit claimants to be transferred. |
| This means that from 2016 to well into 2018, it is likely Britain will have a two-tier welfare system with some people on universal credit and millions not. The DWP estimates there are 7.7 million eligible claimants. | |
| Responding to the announcement, Rachel Reeves, Labour’s shadow work and pensions secretary, said the programme had “become a complete shambles”. | |
| “Labour wants universal credit to succeed but the government’s mishandling of the programme has led to huge waste and delays with over £130m of taxpayers money wasted on failed IT. It’s another example of Tory welfare waste,” she said. | |
| “A Labour government would pause universal credit for three months to examine whether the programme can be rescued from the shambles David Cameron’s government has left it in.” | “A Labour government would pause universal credit for three months to examine whether the programme can be rescued from the shambles David Cameron’s government has left it in.” |