Universal credit ‘may never deliver the value for money’

Damning independent audit of welfare reform
finds it is running behind schedule and not delivering on aims

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The independent auditors also revealed that the new benefits
scheme could end up costing more than the system it replaces, and
that ministers are unable to tell if the reform will ever be a
success.

Universal credit “rolls six major working-age benefits into one
monthly payment, including job seeker’s allowance, tax credits and
housing benefit”, reports The Guardian. Its central aims are to “simplify
the benefits system, making it more efficient and to provide
incentives for claimants to enter work”.

But the NAO says it has “significant doubts” that these aims can
be achieved. The auditors said ministerial claims for universal
credit are in some cases “theoretical” and based on “unproven
assumptions”.

“Damning is an overused cliché for NAO reports, but boy that
word applies here,” says HuffPost’s Paul Waugh.

“Despite repeated government claims that the reform will put
200,000 more people into work”, he adds, “the NAO said the
Department for Work and Pensions (DWP) has been forced to admit it
won’t ever be able to determine whether this pledge has been
achieved”.

But the scheme is so massive and complex that “there is really
no practical choice but to keep on,” the NAO’s Amyas Morse
says.

While Morse said the NAO recognised that ministers were
committed to the rollout, he said: “We don’t think the DWP has
shown the same commitment to listening and responding to the
hardship faced by claimants. We think the larger claims for
universal credit, such as boosted employment, are unlikely to be
demonstrable at any point in future. Nor for that matter will value
for money.”

The DWP launched a vigorous defence of universal credit,
insisting it was operating effectively. It said the NAO was
incorrect to conclude the benefits of the programme could never be
demonstrated.

“Universal credit is good value for money and is forecast to
realise a return on investment of £34bn over 10 years against a
cost of £2bn, with 200,000 more people in work,” a DWP
spokesman said. “Furthermore 83% of claimants are satisfied with
the service and the majority agree that it ‘financially motivates’
them to work.”

But Gillian Guy, chief executive of Citizens Advice, told
The Independent the findings came as no
surprise.

“Since universal credit was first introduced, we have helped
tens of thousands of people who have struggled with the new
system,” she said. “Many of those are finding it hard to make their
claim, which can further hamper their chances of receiving their
benefit on time.”