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Universal credit benefit roll-out '£600m under budget' | Universal credit benefit roll-out '£600m under budget' |
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The roll-out of universal credit has cost less than expected and is being carefully delivered "stage-by-stage", the work and pensions secretary says. | The roll-out of universal credit has cost less than expected and is being carefully delivered "stage-by-stage", the work and pensions secretary says. |
Iain Duncan Smith told the Andrew Marr Show the new benefit was £600m under budget and was being tested gradually. | Iain Duncan Smith told the Andrew Marr Show the new benefit was £600m under budget and was being tested gradually. |
Universal credit, which replaces six payments, is being introduced across the country from Monday. It should be offered by all job centres by 2016. | |
Labour called it a "failing programme" that would take years to implement. | Labour called it a "failing programme" that would take years to implement. |
The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets. | The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets. |
'Waste and delays' | 'Waste and delays' |
Universal credit combines six working-age benefits - including housing benefit, JSA and tax credits - into a single payment is currently available in nearly 100 job centres. | |
About 50,000 people in selected areas have claimed it since it was introduced in April 2013 - far fewer than the government originally said would be getting it by now. | About 50,000 people in selected areas have claimed it since it was introduced in April 2013 - far fewer than the government originally said would be getting it by now. |
Computer problems have also caused delays and forced ministers to write off tens of millions of pounds. | |
But Mr Duncan Smith told Andrew Marr there was always "a certain amount of write-down" when developing IT systems. | |
"Compared with the expenditure of something in the order of £2.4bn that was originally expected, we're now spending £1.8bn and included in all of that we'll actually spend £600m less on this development than originally planned," he said. | |
The benefit will be made available in 150 job centres over the next two months, with all job centres due to be covered by 2016. | |
Asked about delays to the scheme, Mr Duncan Smith insisted he had acted on expert advice to introduce it in stages. | |
He said launching benefit changes "all at once" did not go well - remarking on the problems faced by previous governments with the introduction of tax credits. | |
"So we brought in some other people, they looked again at, they advised me and I took that advice, which was do it stage by stage, test it, then roll it out, then test the next bit, then roll it out and that's what we're actually doing." | "So we brought in some other people, they looked again at, they advised me and I took that advice, which was do it stage by stage, test it, then roll it out, then test the next bit, then roll it out and that's what we're actually doing." |
What is universal credit? | What is universal credit? |
Universal credit Q&A | Universal credit Q&A |
Meanwhile, government analysis suggests claimants in pilot areas were 13% more likely to have found work within four months than similar groups claiming JSA. | Meanwhile, government analysis suggests claimants in pilot areas were 13% more likely to have found work within four months than similar groups claiming JSA. |
Labour said the government - which had originally promised that universal credit would save £1.7bn by cutting errors and fraud - had now cut that target by two thirds. | Labour said the government - which had originally promised that universal credit would save £1.7bn by cutting errors and fraud - had now cut that target by two thirds. |
Shadow work and pensions secretary Rachel Reeves said it would take "1,571 years" to roll out universal credit to everyone at the current rate. | |
She said: "The only person who believes Iain Duncan Smith's promises on universal credit is Iain Duncan Smith. | |
"Labour wants universal credit to work and we'll call in the National Audit Office to do an immediate review of this failing programme to get a grip of the spiralling waste and delays." | "Labour wants universal credit to work and we'll call in the National Audit Office to do an immediate review of this failing programme to get a grip of the spiralling waste and delays." |
Ministers estimate that, once fully implemented, universal credit could boost the economy by £7bn every year because of an increase in people being in work and reduced benefit expenditure. | Ministers estimate that, once fully implemented, universal credit could boost the economy by £7bn every year because of an increase in people being in work and reduced benefit expenditure. |
Are you claiming the universal credit benefit? You can email haveyoursay@bbc.co.uk with your experience. Please include a telephone number if you are willing to be contacted by a BBC journalist. | Are you claiming the universal credit benefit? You can email haveyoursay@bbc.co.uk with your experience. Please include a telephone number if you are willing to be contacted by a BBC journalist. |
Have your say | Have your say |