The botched roll out of Universal Credit is set to continue under the Conservatives, it has been announced today.
Universal Credit is replacing six existing benefits including Working Tax Credit, Child Tax Credits and Housing Benefit, with one single monthly payment.
Described as a “welfare revolution” by Work and Pensions Secretary Iain Duncan Smith, Universal Credit will be made available to new single claimants in Richmond, Kirkwall, Lerwick and Stornoway, from today (11 May 2015).
According to the Department for Work and Pensions, all Jobcentres in the country will be offering Universal Credit to some groups of claimants by spring 2016.
Iain Duncan Smith MP, said:
“Universal Credit is bringing welfare into the 21st Century by restoring fairness to the system and making work pay in a modern labour market.
“We’ve already seen remarkable successes with Universal Credit claimants moving into work faster and staying in work longer.
“As part of our long-term economic plan, today sees the next stage of this welfare revolution with the continual roll out of Universal Credit.”
The new benefit is currently available in one-in-three Jobcentres (260). The government initially targeted the roll out of Universal Credit at the ‘easiest to help’ claimants, such as single people without children. For example, only 96 Jobcentres are currently offering Universal Credit to couples, families and lone parents.
DWP figures show that more than 64,000 people have made a claim. However, this is far short of the one million originally promised by Mr Duncan Smith to be in receipt of Universal Credit by April 2014.
Universal Credit has been dogged with delays and IT problems. DWP officials have already been forced to write off millions of pounds in failed IT software.
HM Treasury officials admitted last year that a potential £633 million could be written off by the time Universal Credit is completely rolled-out across the country and to all groups of claimants.
Children’s charity Gingerbread warned in October 2013 that working single parents will be worse off under Universal Credit. Researchers found that there will be little financial incentive for single parents to increase their hours beyond ‘mini-jobs’.
The charity also found that non-working single parents’ income will be on average lower under universal credit than it is now.
Commenting on the findings, Gingerbread chief executive Fiona Weir said at the time:
“Government claims that universal credit will make work pay, but in fact working single parents will be the biggest losers under the new system.
“The simple fact is that universal credit won’t deliver on its promise to make work pay. Single parents on low wages will be under considerable pressure to extend their hours under universal credit, but our research shows that financially, extra hours often won’t stack up.”
However, the DWP claims that Universal Credit will leave three million families better off and provide a £7 billion boost to the economy.
The department also claims that Fraud and Error will be reduced under Universal Credit, with officials having access to real-time HMRC earnings data.
Universal Credit will enable benefit payments to be calculated more accurately, says the DWP, ‘including topping up claimants earnings when they are on a low income’.
Source – Welfare Weekly, 11 May 2015