The Citizens Advice Bureau (CAB) has warned of “huge challenges” around the corner for the coalition government’s flagship Universal Credit following the release of a DWP pathfinder evaluation.
Universal Credit has been slow to get off the ground and has so far only been tested/evaluated in a handful of areas. Rugby and Inverness became the latest to implement the new system earlier this month.
The new system is replacing a number of state benefits and tax credits through merging them into one single monthly payment, but the changes have come under heavy criticism from opponents who fear that large swathes of those affected may not be ready, or capable, of coping with the reforms and how Universal Credit is designed to work.
The changes, seen as one of the biggest shake-ups of Britain’s welfare system for over a decade, have been swamped by a catalogue of problems and delays, despite the Secretary of State for Work and Pensions, Iain Duncan Smith MP, insisting that Universal Credit is both on time and within budget.
Universal Credit has also come under heavy criticism for its cost to taxpayers – nearly six times greater than originally planned, according to Computer Weekly – and this month the Daily Mirror reported that Iain Duncan Smith had allegedly attempted to shift the blame for the problems faced by Universal Credit onto civil servants.
Furthermore, training people how to use and apply for Universal Credit is likely to cost many millions of pounds, as some of those affected may be computer illiterate and/or will not have internet access.
The CAB have warned the government that its far too early to judge whether Universal Credit is working because so far only single people without children have been moved onto the benefit. They say that as many as nine out of ten people are not ready for Universal Credit and will struggle to fill out online application forms. The CAB also draw attention to the fact that 22% of those affected “don’t have basic banking services”.
Citizens Advice Chief Executive Gillian Guy said:
Ministers mustn’t draw any conclusions from these very early numbers. Universal credit can potentially have a huge positive impact but the project has been beset with uncertainty and own goals. Our research shows nine out of ten of our clients are not ready for Universal Credit.
“The only people to have moved onto the new benefit so far are single people with no dependants. A slow introduction is sensible but the small number of pilots does not reflect the huge challenges coming round the corner and Ministers must give us details on how they’ve prepared for that.
“The only issue which matters is how this affects individual people and their families. Half of CAB clients in pilot areas will struggle with online forms and 22% don’t have basic banking services. Despite the urgency of the situation we are still no closer to knowing how people in extremely complicated circumstances will be helped onto the new system. I’m looking forward to hearing in the next few weeks how Ministers will fix the glaring problems which will soon be upon us if they don’t take action. Ministers must also ensure the new lower level of childcare support for low income families does not undermine the Government’s ambition to make every hour or work pay.”
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