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Esther McVey misled MPs over universal credit, says watchdog McVey apologises for misleading MPs on welfare changes
(about 3 hours later)
Esther McVey, the welfare secretary, has been accused of making misleading statements to parliament and the public about the government’s faltering welfare changes by the head of the independent Whitehall spending watchdog. Esther McVey, the work and pensions secretary, has been forced to apologise to parliament after making misleading statements about the government’s faltering welfare changes.
Sir Amyas Morse told the minister she had misinterpreted a report by the National Audit Office into universal credit to make it look as if the new welfare system was working well. It was the first time Morse had released personal correspondence with a minister, and highlighted the tension between the Department for Work and Pensions and the NAO over McVey’s statements. The MP for Tatton’s statement followed the release of a damning letter from Sir Amyas Morse , who told the minister she had misinterpreted a report by the National Audit Office on universal credit to make it look as if the new welfare system was working well.
It was the first time Whitehall’s independent spending watchdog had released personal correspondence with a minister, and it has highlighted the tension between the Department for Work and Pensions and the NAO over McVey’s statements.
McVey should not have claimed universal credit was being rolled out too slowly when the NAO had said the DWP should ensure it was working properly before transferring any more people on to it from previous benefits, she was told.McVey should not have claimed universal credit was being rolled out too slowly when the NAO had said the DWP should ensure it was working properly before transferring any more people on to it from previous benefits, she was told.
She should not have said universal credit was working when the report said this was not proven, Morse said. She should not have claimed the report had not taken into account recent improvements in welfare, when it was signed off days earlier by her department, he added. She should not have said universal credit was working when the report said this was not proven, Morse said. She should not have claimed that the report had not taken into account recent improvements in welfare, when it was signed off days earlier by her department, he added.
The ministerial code states that ministers must give accurate and truthful information to parliament. “Ministers who knowingly mislead parliament will be expected to offer their resignation,” it states. The ministerial code states that ministers must give accurate and truthful information to parliament.
Responding to the letter, Labour called for a full apology, urging her to resign should she refuse to do so. Hours after the release of the letter on Wednesday, McVey went to the House of Commons to say she should not have claimed that the NAO wanted welfare reforms to be speeded up.
Margaret Greenwood, the shadow work and pensions secretary, said: “This is a very serious matter. She [McVey] sought to rubbish the NAO report, rather than respond to its findings, which were damning of her government’s flagship social security policy, even though her own department had agreed the report prior to its publication.“She must now make a full apology to the NAO, to parliament and to the people who rely on universal credit for support. If she won’t then she should consider her position because people’s lives are being ruined by this botched policy rollout.” “The NAO report did not say that and I want to apologise to the House for inadvertently misleading you. What I wanted to say was that the NAO said there was no practical alternative,” she said.
The Liberal Democrats said the minister should resign or be sacked. Its welfare spokesman, Stephen Lloyd, said: “Esther McVey’s contempt for inconvenient facts and independent, reputable bodies such as the NAO shows she is unfit for office. McVey also told MPs she was “working on setting up a meeting with the NAO” about other matters, but that she stood by her claims that the auditors’ report did not take into account recent changes to universal credit. “The impact of these changes are still being felt and therefore, by definition, couldn’t have been fully taken into account by the NAO report,” she said.
“Theresa May should replace her with someone who has the humility to recognise that without significant changes, a national rollout of universal credit will cause considerable, unnecessary hardship.” She is expected to face further parliamentary scrutiny over the debacle after Frank Field, chair of the work and pensions committee, asked the Speaker, John Bercow, for an urgent question as early as Thursday.
MPs will ask McVey why her apology failed to address Morse’s complaint that she had misinterpreted the report to claim that the NAO had stated that universal credit was working.
They are also expected to ask why McVey’s statement to parliament appeared to contradict the NAO’s insistence that the report was up to date. It is understood that the NAO team was making changes to its data until this June to make sure that it was aligned with the latest information.
The public accounts committee will question officials from McVey’s department on Monday about universal credit.
The NAO’s report was released last month and was widely seen as a damning account of the government’s welfare changes, which are supposed to squeeze six separate benefits into a single system.The NAO’s report was released last month and was widely seen as a damning account of the government’s welfare changes, which are supposed to squeeze six separate benefits into a single system.
McVey appeared before parliament on 21 June and said the report “did not take account” of recent changes to the welfare system.McVey appeared before parliament on 21 June and said the report “did not take account” of recent changes to the welfare system.
“Our analysis shows that universal credit is working; we already know it helps more people into work – and stay in work – than the legacy system,” she said.“Our analysis shows that universal credit is working; we already know it helps more people into work – and stay in work – than the legacy system,” she said.
She also claimed universal credit was innovative and used the latest technology. She went on to say countries such as New Zealand, Spain, France and Canada had sent representatives to “watch and learn” about the system. She also claimed universal credit was innovative and that it used the latest technology. She went on to say countries such as New Zealand, Spain, France and Canada, had sent representatives to “watch and learn” about the system.
McVey said the report did not acknowledge the DWP had delivered recent improvements in areas such as administration costs and payment timeliness. McVey said the report did not acknowledge that the DWP had delivered recent improvements in areas such as administration costs and payment timeliness.
Iain Duncan Smith, a former welfare secretary and an ally of McVey’s who set up the new system, told parliament the NAO’s report was a “shoddy piece of work”. Iain Duncan Smith, a former welfare secretary and an ally of McVey, who set up the new system, told parliament the NAO’s report was a “shoddy piece of work”.
In the letter, Morse maked clear he was writing because he had not been able to set up a meeting with McVey. In the letter Morse made clear he was writing because he had not been able to set up a meeting with McVey.
“I am now reluctantly writing to you to clarify the facts,” he wrote, saying the NAO’s report had been signed off on 8 June. “I am now reluctantly writing to you to clarify the facts,” he wrote, saying the NAO’s report had been signed off on 8 June. “Our report was fully agreed with senior officials in your department. It is based on the most accurate and up to date information from your department … it is odd that by Friday 15 June you feel able to say that the NAO ‘did not take into account the impact of our recent changes’.”
“Our report was fully agreed with senior officials in your department. It is based on the most accurate and up to date information from your department … it is odd that by Friday 15 June you feel able to say that the NAO ‘did not take into account the impact of our recent changes’,” he wrote. He added: “I’m also afraid your statement on 2 July, that the NAO was concerned that universal credit is currently rolling out too slowly and needs to continue at a faster rate, is also not correct. My recommendation makes clear that the department must ensure it is ready before it starts to transfer people over from previous benefits.”
“I’m also afraid your statement on July 2 that the NAO was concerned that universal credit is currently rolling out too slowly and needs to continue at a faster rate is also not correct. Morse also criticised the minister for claiming the report showed that universal credit was working.
“My recommendation makes clear that the department must ensure it is ready before it starts to transfer people over from previous benefits,” he wrote.
Morse also criticises the minister for claiming the report showed that universal credit was working.
“The department has not measured how many claimants are having difficulties … 40% of them said they were experiencing financial difficulties and 25% said they couldn’t make an online claim,” he wrote.“The department has not measured how many claimants are having difficulties … 40% of them said they were experiencing financial difficulties and 25% said they couldn’t make an online claim,” he wrote.
Before McVey’s statement Labour had called for a full apology, urging her to resign should she refuse to do so.
Margaret Greenwood, the shadow welfare secretary, said: “Esther McVey has admitted that she misled parliament. She did so not once but twice, on 21 June and 2 July, despite the fact that her own department had agreed the NAO report on 8 June. If she didn’t read [the NAO report] properly that’s incompetence. If she did read it properly and knowingly misled parliament then she should resign.”
The Liberal Democrats said the minister should resign or be sacked. The party’s welfare spokesman, Stephen Lloyd, said: “Esther McVey’s contempt for inconvenient facts and independent, reputable, bodies such as the NAO, shows she is unfit for office.
“Theresa May should replace her with someone who has the humility to recognise that without significant changes, a national rollout of universal credit will cause considerable, unnecessary, hardship.”
The DWP has been asked for a comment.The DWP has been asked for a comment.
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