Drive to put 3m more on universal credit on hold

THE next stage of the Government’s universal credit welfare programme is being drastically scaled back amid concerns of the ‘catastrophic’ effects it has on benefit claimants.

Work and Pensions Secretary Amber Rudd has scrapped plans for an imminent parliamentary vote allowing 3million existing welfare claimants to be moved to the controversial system.

Instead she wants to seek approval to switch just 10,000 – to monitor the way the system works. MPs will only be asked to approve the next 2.99million people once the pilot scheme has been proven to be a success. More than a million peo-

ple already receive universal credit – launched in 2013. They are either new benefit claimants or those whose circumstances have changed, such as moving house.

The Government wants almost seven million to receive it by 2023. Universal credit merges six benefits into one monthly payment. Theresa May yesterday insisted it would still be fully implemented by 2023.

Miss Rudd tweeted: ‘UC is a vital reform so I want to roll it out carefully. I’m glad charities and colleagues are backing my plans to move and monitor 10,000 people from the old system. It means UC can proceed on time and be fit for purpose.’

Some 2.2million families are expected to gain an average £41 a week but 3.2million could lose £4 a week, according to analysis. Paul Farmer, of mental health charity Mind, warned pushing ahead with original plans could be ‘catastrophic’.

‘Effects could be catastrophic’