Tuesday, December 10, 2013

Universal Credit project to abandon ‘digital-by-default’ – £303m spent, £65m of IT assets to show for it

Reblogged from brianwernham:

At today’s (Monday) Parliamentary Select Committee on Work and Pensions hearing, the new Universal Credit Programme Director, Howard Shiplee announced the abandonment of ‘digital-by-default’ for Universal Credit for the ‘foreseeable future’.  Apart from the initial Universal Credit claim procedure, all will remain face-to-face, via telephone and post.

UC-Hearing

Mike Driver, DWP Finance Director General stated that of the £303m spent on developing the IT, £40m will be written off now, with £91m accelerated depreciation to follow on IT that is will be temporarily used until 2017. Under close cross-examination by Teresa Pearce MP, he further explained that a further £107m of IT expenditure was not ‘capitalised’ at all leaving no useful software asset.

So, the only long-term asset on the balance sheet after the expenditure of £303m on IT is £65m.

The numbers will be clarified overnight. Dame Anne Begg announced at the start of the hearing that the missing DWP accounts for 2012-13 will finally be published tomorrow (Tue).

All figures to April 2013 – any further expenditure not included.

More details, references from an interesting online DWP source here:

“After you make your Universal Credit claim, most interactions will be face to face, by telephone or by post.” Universal Credit Claim Journey, released 6th Dec 2013, page 4

Universal Credit “changes to circumstances through Universal Credit telephone helpline followed by confirmation through the post” ibid, page 5

Universal Credit moves with you – even if your new local Job Centre is not in one of the 7 Pathfinder areas! ibid, page 6