Another disaster at DWP?

Once again the Tories are having to back pedal as their Universal Credit programme shows signs of falling behind schedule and facing major problems. The system, which will roll all benefits and tax credits into a single payment automatically linked to earnings, was expected to be trialled for new claimants across four areas of the country from late April.

Unfortunately, and typical ignorance of the simple realities of life, Iain Duncan Smith failed to check out with those who deliver welfare benefits and consequently he has been forced to scale back the trials to a single JCP office in Ashton-under-Lyne. So much for a grand roll-out.

Three other pilot areas in Wigan, Warrington and Oldham that were also due to ‘test out’ the new programme will not now begin processing the payments until at least July and possibly later.

Of course it would be nice to think that IDS would have the humility to admit to, and display a little embarrassment, but I suspect we may be waiting a long time. This is a man noted for his single-mindedness. No doubt over the coming days we will hear a range of excuses, but the bottom line is that it has been a kick in the pants for the Secretary of State.

In February, 2013, Iain Duncan Smith drafted in one of the Government’s most experienced trouble-shooters to take charge of the programme – a move which led to the departure of another senior DWP civil servant a few weeks later.

The delay in rolling out Universal Credit are probably due to the fact that most frontline staff do not have the training, computer programmes or experience in place to avoid making disastrous mistakes which could lead to people not receiving the benefits to which they are entitled. A point made by a number of welfare organisations months ago. Could this be more evidence that IDS doesn’t listen to those around him?

In its announcement of the delay the Department of Work and Pension made no attempt to explain why it was unable to proceed as planned. Interestingly, in a neat little sidestep a spokesman for the department searched for a way to get IDS off the hook and tried to suggest it was “sensible” to start with one area before rolling it out to the other three in July.

Speaking on behalf of DWP, he said:

“It will allow us to make any changes that we feel we need to make and see what works and what doesn’t”.

Liam Byrne, Labour’s Shadow Work and Pensions Secretary, tried to capitalise on this bungling by condemn UC and describing the announcement as “yet another embarrassing setback”.

He went on to say:

“The scheme is already late and over-budget and in spite of earlier promises Ministers have admitted that they have no idea when out of work claimants will move over to Universal Credit … The truth is the IT for Universal Credit appears to be nowhere near ready. Universal Credit calculations depend on salary data from HMRC's new PAYE Real Time Information system. Obligations for small firms to provide PAYE data on or before each employee payment have recently been delayed from April until October. And DWP are so worried they are now barring access to their five main contractors. This scheme is now on the edge of disaster. Ministers must admit this project is in crisis and start to fix it now – before millions of families tax credits are put at risk.”

Regrettably, Byrne failed to point out that UC will create significant challenge to low-income families. The simple reality is that, according to a Resolution Foundation report, “Conditions Uncertain”, almost 1.2 million low-paid workers entitled to support under Universal Credit will have to look for extra work or face the risk of having payments withdrawn. Furthermore, in a report by Tanni Grey-Thompson, 100,000 disabled children stand to lose up to £28 a week and 116,000 disabled people who work will be at risk of losing up to £40 per week from help towards additional costs of being disabled.

These are injustices that appear to be going through on a nod and a wink. The Tories and their Lib-Dem puppies will force this programme onto the most vulnerable in our society and it is a responsibility of those on the left to expose the extent of these injustices and campaign for their eradication.

We have a responsibility to do everything in our power to protect the poor and the vulnerable. If we fail them now we have no right to ask for their support later.