It’s working! Minister slaps down critics of IDS benefit revolution

CRITICS of the Universal Credit benefit were attacked by Work and Pensions Secretary David Gauke yesterday as he insisted the system improves the chances of claimants getting into work.

A group of Tories led by MP Heidi Allen have demanded a delay in the national expansion of the scheme, which combines six existing benefits into a single payment.

They have warned of long delays in claimants receiving their money.

Over the weekend, former Conservative prime minister Sir John Major called for a review of Universal Credit, claiming it was ‘operationally messy, socially unfair and unforgiving’.

But in a robust defence of the system yesterday, Mr Gauke told the Commons: ‘Universal Credit is giving more people the opportunity to get into work and progress in work. The personalised support that is provided by jobcentres where Universal Credit has been rolled out is proving to be effective.

‘To those people who call on me to stop the process, I say that once fully rolled out, Universal Credit is likely to mean that 250,000 more people will be in work than would otherwise have been the case.

‘I will not deny those people that opportunity.’

He also credited the system with helping Britain achieve its record employment rate. Mr Gauke pointed to figures suggesting that those who go onto the Universal Credit system are more likely to be in work six months later than if they had remained on the old-style benefits system – and they are also more likely to be earning more.

Mr Gauke insisted the system was being implemented ‘gradually and sensibly’. But he came under fire from Labour MPs who claimed families could be left destitute and homeless at Christmas as a result of the extension of the system later this year. Frank Field, chairman of the work and pensions committee, asked for a guarantee that ‘none of our constituents will be faced by hunger, near destitution, for the lack of money over the Christmas period’. Labour work and pensions spokesman Debbie Abrahams claimed Universal Credit was causing ‘debts, rent arrears and even homelessness up and down the country, with many of the claimants already in work’.

Universal Credit is a a radical reform to the benefits system drawn up and instigated by Iain Duncan Smith when he was work and pensions secretary.

Unlike the existing regime, claimants are encouraged to find work because they do not lose vast sums of benefit payments when they get a job.

Instead benefits cash is gradually reduced according to earnings.

Critics say that because the first payment is made in arrears, claimants are waiting six weeks or longer to receive their benefits, forcing them to turn to food banks and loan sharks.

At last week’s Tory conference Mr Gauke said he would tweak the system to ensure claimants get advance payments quicker.

And yesterday he said: ‘Nobody who needs support should have to wait six weeks before they receive any support, and we’re making clear that people can receive an advance of their first month’s payment.’

‘I won’t deny them that opportunity’