Esther McVey hails universal credit scheme as 'great British innovation', days after scathing watchdog report

Labour said the NAO report was ‘damning’ and described universal credit as a ‘major failing of public policy’

The work and pensions secretary said the NAO report did not take into account government’s recent changes to the benefit (Parliament Live)

Pensions secretary Esther McVey has hailed the universal credit scheme as a “great British innovation”, despite the government’s own watchdog sounding the alarm over a catalogue of failings just days ago.

The cabinet minister appeared to schedule a statement in the Commons with the specific goal of hitting back at the criticisms in the report, as universal credit’s roll-out comes under closer scrutiny.

Her remarks follow a scathing report by the National Audit Office (NAO) – the independent government auditor – that found the new benefit is failing to deliver value for money and pushing some claimants into financial hardship.

The report also accused the government of not showing sufficient sensitivity towards some claimants and failing to monitor how many are having problems with the programme, or have suffered hardship.

But during the seven-minute statement, Ms McVey highlighted examples of positive experiences of individuals on the scheme.

“Universal credit is a brand new benefit system, it is based on leading-edge technology and agile working practices,” she told MPs gathered in the Commons on Thursday.

Ms McVey continued: “Our strategy is based on continuous improvement. The result will be a tailor-made system based on the individual.

“This is a unique example of great British innovation and we are leading the world in developing this kind of person-centred system. Countries like New Zealand, Spain, France and Canada have met with us to see universal credit to watch and learn what is happening for the next generation of benefit system.”

Referring to the NAO report, Ms McVey said it did not take into account the government’s recent changes to universal credit.

“Our analysis shows that universal credit is working,” she said. “We already know it helps more people into work and stay in work than the legacy system.

“Once fully rolled out it will be a single streamlined system, reducing administration costs and provide value for money for all our citizens.”

But Margaret Greenwood, the shadow work and pensions secretary, said the NAO report into the government’s flagship welfare system was “damning” and described universal credit as a “major failing of public policy”.

She continued: “It is failing to achieve its aims, and as it stands there is no evidence it ever will. The report suggests that universal credit may cost more to administer than the benefit system it replaced and concludes it has not delivered value for money.”

Ms Greenwood’s comments also came after Jeremy Corbyn restated his demand that the roll-out of universal credit be halted “before it ruins more people’s lives”.

“This policy supposedly designed to help people is driving children into poverty,” he said.