Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Universal credit scheme faces withering criticism from MPs

Management described as "extraordinarily poor" and "alarmingly weak" in new report

Nigel Morris
Thursday 07 November 2013 01:00 GMT
Comments
Iain Duncan Smith’s flagship benefit reform faces withering criticism today
Iain Duncan Smith’s flagship benefit reform faces withering criticism today (Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Iain Duncan Smith’s flagship benefit reform faces withering criticism today from MPs over “shocking” mistakes that have squandered at least £140m of taxpayers’ money.

The universal credit scheme, which replaces six means-tested benefits and tax credits, is due to be rolled out nationally between 2014 and 2017.

But in a new report the Public Accounts Committee denounced the “extraordinarily poor” and “alarmingly weak” management of the planned programmes.

It said secretaries had been allowed to authorise purchase orders worth more than £20m. In some cases it is unclear what suppliers have been paid for.

The PAC questioned whether the reform can be fully delivered by 2017, branding a pilot “inadequate” and vulnerable to fraud.

It said the Department for Work and Pensions had “neglected to implement basic procedures for monitoring and authorising expenditure”.

The committee added that some computer equipment had to be written off. Initial estimates suggest the write-offs could amount to at least £140m, although the final figure could be higher.

A DWP spokeswoman said: “Universal Credit is a vital reform that rewards work instead of trapping people on benefits. It will ultimately bring a £38bn economic benefit to society.

“This report doesn’t take into account our new leadership team, or our progress on delivery. We have already taken comprehensive action including strengthening governance, supplier management and financial controls.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in