Thomas Bridge 07 November 2013

Universal Credit will waste over £140m, PAC says

Ministers have heavily criticised the Government’s flagship Universal Credit (UC) programme, saying the scheme is likely to waste over £140m of public money.

Implementation of UC by the Department of Work and Pensions (DWP) has been ‘extraordinarily poor’, with a ‘shocking absence of control’ allowing one personal assistant to approve a £22.6m purchase order - the Public Accounts Committee (PAC) said.

A report into the early progress of UC – which draws together six benefits into a single system – found that while £425m had been spent so far on the programme, at least £140m of IT assets would have to be written off.

Margaret HodgeMargaret Hodge said management of Universal Credit had been ‘alarmingly weak’.

The DWP said it expects UC to bring a £38bn economic benefit to society and affirmed it had already taken action to strengthen governance and supplier management.

In a damning report, the PAC claimed DWP had failed to properly understand the enormity of the task, properly monitor progress or intervene effectively when problems arose.

Senior managers only became aware of problems thanks to ‘ad hoc reviews’, which allowed early warning signs to be missed.

Margaret Hodge, chair of the Committee of Public Accounts, attacked the DWP for adopting a ‘fortress culture’ which saw it reporting only good news and denying problems.

MPs said they anticipated UC would not hit current targets of enrolling 184,000 claimants by April.

The PAC also concluded the pilot programme remained ‘inadequate’ and had failed to deal with issues such as the volume of claims or their complexity.

‘Universal Credit is the DWP’s single biggest programme and enjoys cross-party support, yet its implementation has been extraordinarily poor,’ Hodge said.

‘The failure to develop a comprehensive plan has led to extensive delay and the waste of a yet to be determined amount of public money.’

A DWP spokesperson said: ‘Universal Credit is a vital reform that rewards work instead of trapping people on benefits.

‘We don’t recognise the write off figure quoted by the committee and expect this to be substantially less.’

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Director Housing

North Yorkshire Council
£111,533 to £119,774 plus relocation support
Housing is one of the most high profile and closely scrutinised areas in local government Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Strategic Head of Finance and S151 Officer

Sevenoaks District Council
Package up to £109,592
As the Section 151 Officer, you will play a key role in supporting the Council through its wider journey.. Sevenoaks, Kent
Recuriter: Sevenoaks District Council

Social Worker (Family Worker, Link Role) - Family Solutions

Essex County Council
£38487 - £51834 per annum
Interviews will be held in person at Greenstead Youth Centre, Colchester on Monday 8th June 2026.We have an exciting opportunity to join our high-per England, Essex, Colchester
Recuriter: Essex County Council

Adults Social Worker - Tendring Neighbourhood Team

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
This advert is open to Experienced and Newly Qualified Social Worker's (NQSW). The starting salary for a NQSW is £36,124 per annum, rising to £38,487 England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Apprentice - Business & Administration

Essex County Council
Up to £15435.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£15,435 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner