Legal News
Universal Credit cost mounts up, with families not yet on the system (7 February 2014)
Date: 07/02/2014
New figures revealed as the result of a Parliamentary question show that the cost of the coalition government’s flagship Universal Credit project is spiralling, with the cost of each benefit claimant being moved over to the new system being estimated at £225,000.
The project is intended to combine six different benefits into one benefit – and the task of doing so has so far cost £612 million.
Secretary of State for Work and Pensions Iain Duncan Smith was hoping that by April 2014, a total of one million claimants would be receiving Universal Credit – however by mid-2013, just 2,720 claimants had been signed up to the new benefit.
The government has admitted that the target date of 2017 for moving all claimants across to Universal Credit will now be missed. Labour has said that if the project had remained on course for the target date, the per capita cost of signing up each claimant to Universal Credit would have been £612 and not £225,000.
The cost of the scheme to date (2010-2014) totals £615m.
Labour Shadow Welfare Minister Chris Bryant said:
“Iain Duncan Smith’s flagship policy has been plagued with delay after delay from the outset – and millions of pounds have been wasted.”
Universal Credit will eventually combine Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance, Income Support, Working Tax Credit and housing benefit.
In December, Mr Duncan Smith denied there was any “debacle” involving the Universal Credit project – but revealed the system could not yet process claims relating to couples or children.
The Universal Credit pilot scheme focused on young, single adult males whose claims are comparatively straightforward.
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Duncan Lewis is a leading firm of family solicitors and can advise on family issues such as divorce and ancillary payments and housing benefit – as well as children taken into Local Authority care, child contact and residence, and child abuse.
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For expert advice on family and children law contact Duncan Lewis family solicitors on 020 7923 4020.