Watchdog warning over rollout of Universal Credit
THE Government’s flagship Universal Credit benefit could end up costing more than the benefits system it is replacing, according to a damning report from the National Audit Office (NAO).
The benefit for job-seekers, which incorporates housing costs and five other benefits into one payment, is also taking far longer to roll out than intended.
“Universal Credit (UC) has not delivered value for money and it is uncertain that it ever will,” the public spending watchdog said.
The Department for Work and Pensions has admitted itself that it cannot measure whether UC is achieving its policy goal of getting an additional 200,000 people into work.
The roll-out was initially intended to be complete by October 2017, but at present only about one in 10 of those eventually expected to be on UC is claiming it.
The NAO also queried claims by the department that people were not suffering difficulties and hardship and satisfaction rates among claimants are high.
It said the DWP had not shown sufficient sensitivity towards some claimants and it does not know how many claimants are having problems with the programme.
Its report concludes that there is no practical alternative to continuing with rollout of UC but said ministers should make sure the programme does not expand before it has learned from insights it has gained from the roll-out so far.
Amyas Morse, head of the National Audit Office, said: “The department has kept pushing the Universal Credit rollout forward through a series of problems. We recognise both its determination and commitment, and that there is really no practical choice but to keep on with the rollout.
“We don’t think DWP has shown the same commitment to listening and responding to the hardship faced by claimants.”
Critics of the Government’s Universal Credit have seized the report to call for changes to the flagship benefit.
Gillian Guy, chief executive of Citizens Advice, said: “While Universal Credit is working well for some, more than a quarter of a million people are expected to wait longer than five weeks for their first full payment.
“This puts them at risk of falling behind on bills and getting into debt – a heavy price to pay for a system that isn’t working properly.”