DWP Response to The National Audit Office Criticism

The ABC had the chance to talk to the DWP central communications team this morning about the National Audit Office (NAO) report on the roll-out of Universal Credit (UC) today. We have given the DWP a right-to-reply below: 

A DWP spokesman said:

“Previous administrations poured billions into an outdated system with a complex myriad of benefits, which locked some people into cycles of welfare dependency.  Whereas we are building a benefit system fit for the 21^st century, providing flexible, person-centred support, with evidence showing Universal Credit claimants getting into work faster and staying in work longer.

“Universal Credit is good value for money and is forecast to realise a return on investment of £34bn over ten years against a cost of £2bn, with 200,000 more people in work.  Furthermore 83 per cent of claimants are satisfied with the service and the majority agree that it 'financially motivates' them to work.

“As the NAO acknowledges, we have made significant improvements to Universal Credit as part of our ‘listen and learn’ approach to its rollout, and it's on track to be in all jobcentres nationally by the end of 2018.”

Further information:

• We currently have record employment with 32.39m people now in work – a figure that is set to grow by 200,000 once Universal Credit is fully rolled out.
• Universal Credit adjusts to an individual’s earnings (unlike the previous system where people lost access to benefits once they worked over a certain number of hours).
• Analysis also shows that those who are in work and claiming Universal Credit are better off by £600 a year. Claimants are also better supported with tailored support from their work coach, help with housing costs, budgeting advice, and 100% advances payable on the same day if people are in urgent need.
• We have a taken a test and learn approach with Universal Credit and have listened when concerns have been raised. This has included 1,500 changes based on feedback from stakeholders and other interested parties.  Changes to date include:
• Advance payments of up to 100 per cent, available on the same day if there is urgent need
• Direct payments to landlords
• 2 weeks’ housing benefit run-on
• Removing waiting days
• Support for kinship carers
• Extending transitional protection, including for those claimants receiving the Severe Disability Premium.

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