Universal credit benefit roll-out ‘£600m under budget’

THE roll-out of universal credit has cost less than expected and is being carefully delivered “stage-by-stage”, the work and pensions secretary says.

Iain Duncan Smith told the Andrew Marr Show the new benefit was £600m under budget and was being tested gradually.

Universal credit, which replaces six payments, is being introduced across the country from Monday. It should be offered by all job centres by 2016.

Labour called it a “failing programme” that would take years to implement.

The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets.

Universal credit combines six working-age benefits – including housing benefit, JSA and tax credits – into a single payment is currently available in nearly 100 job centres.

About 50,000 people in selected areas have claimed it since it was introduced in April 2013 – far fewer than the government originally said would be getting it by now.

Computer problems have also caused delays and forced ministers to write off tens of millions of pounds.

But starting on Monday, the benefit will be made available in 150 job centres over the next two months, with all job centres due to be covered by next year.

Asked about delays to the scheme, Mr Duncan Smith insisted he had acted on the advice of experts to introduce it in stages.

He said: “We remember what happened with tax credits and others under other governments, Labour and Conservative, where you launch them all at once, they don’t go right.

“Under tax credits 400,000 didn’t get their payments and billions have been lost.

“So we brought in some other people, they looked again at, they advised me and I took that advice, which was do it stage by stage, test it, then roll it out, then test the next bit, then roll it out and that’s what we’re actually doing.”

Mr Duncan Smith also said people living on benefits needed to “take control and responsibility for their lives like everybody else”.