Ian Duncan Smith Says It Is Totally Feasible for Universal Credit To Get £2bn Extra Funding In Budget

The rollout of universal credit, the government’s flagship welfare reform, is fast emerging as a major political problem. The Observer reports that some 2.8 million homes will see their income cut when the new benefit system goes nationwide next year. 

Former work and pensions secretary Iain Duncan Smith says "it's wholly feasible" for universal credit to get £2bn extra funding in the budget.

What’s going on? Universal credit combines several benefits into a single payment and aims to ensure there is always an incentive to work built into the system. As the paper reports, the benefit has already been rolled out in some areas, but “a crunch is due to come next year when millions are moved from the current system to the new programme.” On Marr, Thornberry launched a furious attack on the government. “We must not come out of austerity on the backs of the poor,” she said. “It’s wrong. It’s fundamentally wrong.”

Money, money, money: You can tell the project is in trouble when Iain Duncan Smith — its architect — is on the TV calling for a change of course from the government. On Marr, he called on the government to stop raising the point at which people start paying tax (which does not benefit the poorest who don’t pay tax anyway) and give the money to the poorest through universal credit, ensuring there are no cuts in what people actually receive when they are moved onto the new system. “The structure works, you need to put the money in,” he said. Watch.

Change coming: On Sky, Tory chairman James Cleverly hinted that action would be taken in the budget on October 29. “Universal credit needs to be well resourced,” he told presenter Sophy Ridge. “We need to make it work.

ABC Comment, Have your say below: