It’s too late to scrap Universal Credit despite problems hitting millions of Brits, spending watchdog warns

IT’S too late to scrap Universal Credit and go back to the old benefits system, the Government’s spending watchdog has warned.

Comptroller and Auditor General Sir Amyas Morse told MPs today that he thought the time had passed to go back to seven or eight different forms of benefit.

The rollout of the flagship new benefits system rolls six into one monthly payment – but has been plagued with problems so far.

Just under one million are on it now, but seven million are set to be on the new system by the end of 2023. The rollout begins for people moving over to the new system next year.

Today the National Audit Office head Sir Amyas told a Commons committee: “We wrote a report recently on Universal Credit where one of the comments in the report that I explicitly, personally, inserted into it was that I didn’t think there was any feasible possibility of going back on the Universal Credit project at this time.”

He added: “I believe there were lots of things that could be done, possibly, better in it, but I didn’t think one of those things was a meaningful discussion about going back to seven or eight different forms of benefit.”

The change had “gone too far for that to happen” he said.

Next year just 10,000 will be put on to the new programme to try and help ease any problems in the system.

Yesterday DWP boss Esther McVey confirmed major changes to the rollout of the system after a damning report said she needed to change tack.

She told MPs that extra help will mean Brits switching to Universal Credit won’t be worse off.

“This is targeted support to help work pay and support the vulnerable,” she said.

The new announcements which were confirmed today included:

• Advance loan debt repayments slashed from 40 per cent to 30 per cent each month – helping 600,000 families with £295 extra per year [from October 2019]
• More old benefits for longer after switch to new system – Jobseekers’ Allowance, ESA, and Income Support will be paid for an extra two weeks [From July 2020]
• Extension from one to three months deadline to move towards Universal Credit – when people are told to
• Business-owners to get a one-year grace period which exempts them from minimum incomes – supporting 130,000 self-employed Brits [From July 2020]
• Disabled Brits on Severe Disability Premium will get more money and have their benefits protected

But many of the new moves won’t come into play for years to come – some not until 2021.

The report from the SSAC, which got a record number of submissions for its reports, slammed ministers for putting “too much risk loaded onto individuals”.

Chair of the Committee, Ian Diamond, said it was “not acceptable” for Brits to continue to wait FIVE weeks for their first benefits payment.

“The Government is proposing that they be offered a choice between financial hardship as they wait for their first payment, or getting into debt to the Department by requesting an advance payment. We do not believe that this is acceptable,” he said.

The committee argued said the current timetable for rollout was “unrealistic” and needs to be “urgently” reconsidered – and the system for switching people over would be “extremely complicated”.

On top of these announcements was a £1.7billion a year packages to push the work allowances up – meaning Brits will be able to get an extra £630 a year from next April.