The DWP claim that research shows Universal Credit claimants do more to look for work than jobseekers claiming under the current system - spending twice as many hours in a week looking for work. It is also set to make 3 million families better off by £177 a month and lift up to 300,000 children out of poverty. When fully in place the economy will benefit by £7bn each year. The Labour party is pledged to "pause the programme" and ask the National Audit Office to investigate. Iain Duncan Smith pointed out that Universal Credit is already one of the most scrutinised government projects - and has recently been assured by the Major Projects authority.
Iain Duncan Smith commenting on Universal Credit being rolled out, said: “Universal Credit is rolling out across the country – transforming lives for the better. But Labour refuses to accept the evidence of success. To my mind this just proves that Labour are still the ‘welfare party’ - completely resistant to change - with no plans and no prospects for the future.”
The UC pathfinder was launched in April 2013 for single jobseekers and was then rolled to couples and now families. 36,000 people have put in a claim for UC and it’s already in 80 jobcentres. Universal Credit merges six benefits into one and simplifies the system so that claimants can see they will always be better off in work than on benefits. It transforms the relationship between jobseekers and the welfare state. Iain Duncan Smith said: “Universal Credit is the end of the dole as we know it. Instead, we are introducing a system that supports people to escape poverty and welfare dependency – putting them on the path to securing a better future for themselves and their families.”
Alongside the monetary support, Universal Credit claimants are paired with a "work coach" who not only supports them to find a job, but continues to work with them to increase their earnings and job prospects until they are free from any kind of welfare dependency.
From this week, Universal Credit rolls out to families. Iain Duncan Smith said: “Universal Credit is much better for families because they can get up to 85% of their childcare costs covered. This provision means parents are better able to make choices about what works for them. This is the latest step in this Governments commitment to supporting families - and Labour’s failure to back Universal Credit looks like yet another example of their resistance to reforms that support families."
UC is restoring fairness and sense to the welfare state - and works alongside other successful policies, such as the benefit cap, which ensures people on benefits don’t get more than those in work. More than 12,000 households subject to the cap have made the choice to move into jobs or stop claiming housing benefit. Iain Duncan Smith said: “This government is restoring fairness to the system - ensuring we have a safety net to support those in need, but not a net that traps people who are ready and able to work. Universal Credit ensures the right financial incentives are in place: sending a clear message that you're always better off in work than on benefits. That's fair to claimants, and fair to taxpayers. This stands in stark contrast to Labour, who presided over a system where some claimants were able to claim in excess of £50,000”
“Labour wants Universal Credit to succeed but the Government’s mishandling of the programme has led to huge waste and delays with over £130 million of taxpayers money wasted on failed IT. It’s another example of Tory Welfare Waste. A Labour government would pause Universal Credit for three months to examine whether the programme can be rescued from the shambles David Cameron’s Government has left it in.” Ms Reeves added.
