Government welfare targets are unlikely to be met thanks to the ‘excruciatingly slow’ roll out of Universal Credit (UC), MPs have said.
While implementation of UC was meant to commence in October 2013, problems with IT systems used to support the combined benefits payment mean the bulk of new claimants are not expected to be incorporated until 2016/17.
According to a report from the Commons Select Committee, efforts by the Department for Work and Pensions (DWP) to resolve IT problems by developing a new ‘end-state solution’ are likely to cost a further £25-32m – with potential further costs arising beyond November 2014.
The Committee slammed the department for its ‘twin track’ approach to UC IT development, under which the Government is spending money on existing IT being used in the welfare Pathfinder while the new solution is being developed.
‘The money wasted on Universal Credit so far – £40m on IT software that now has no use and £90m on software with a useful life of only five years – is a matter of deep regret. It is vital that DWP learns the lessons of past mistakes,’ committee chair, Dame Anne Begg MP, said.
‘Only 4,280 people were claiming UC by December 2013 and the majority of these claims were of the simplest nature. By comparison, in the same month, 1.22 million people were claiming Jobseeker’s Allowance.
‘Whilst it is right to ensure that the system works properly before extending it, there is a difference between cautious progress and a snail’s pace. Given the excruciatingly slow pace of roll-out to date, it is hard to see how the most recent implementation timetable can be met.’
Delays to UC implementation also means councils will have to administer housing benefit for longer than previously thought. The Committee warned that it was ‘impossible’ for local authorities to know how to handle this until DWP clarifies the availability of funding in 2014/15 and 2015/16.
Responding to the report, a DWP spokesperson said: ‘Universal Credit and its IT systems are very clearly working well, with claimants receiving the new benefit and moving into work.
‘We deliberately started in a slow, controlled and safe way, which the committee itself has long recommended, so we can expand universal credit securely to more people.
‘Universal Credit is on track and we will start expanding it to other jobcentres from this summer.’
Photo: flickr/UK Parliament
