This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-23963867

The article has changed 9 times. There is an RSS feed of changes available.

Version 4 Version 5
Universal credit: Flagship welfare reform 'poor value' says watchdog Universal credit: Welfare reform 'poor value' watchdog says
(about 1 hour later)
The government's flagship welfare reform has been badly managed, is "overambitious" and poor value for money, the spending watchdog has said.The government's flagship welfare reform has been badly managed, is "overambitious" and poor value for money, the spending watchdog has said.
The National Audit Office said risks were taken with the universal credit to hit targets, IT systems had "limited functionality" and an unfamiliar project management approach was used.The National Audit Office said risks were taken with the universal credit to hit targets, IT systems had "limited functionality" and an unfamiliar project management approach was used.
A national rollout of the new benefit has been delayed following IT glitches.A national rollout of the new benefit has been delayed following IT glitches.
Work and Pensions Secretary Iain Duncan Smith said these had now been fixed.Work and Pensions Secretary Iain Duncan Smith said these had now been fixed.
Mr Duncan Smith told the BBC: "This will be delivered within budget and within the timescale."Mr Duncan Smith told the BBC: "This will be delivered within budget and within the timescale."
He said the pilot scheme, which has begun with 1,000 people in the Manchester area, "is demonstrating that the IT we put forward for this actually works".He said the pilot scheme, which has begun with 1,000 people in the Manchester area, "is demonstrating that the IT we put forward for this actually works".
'Major problems''Major problems'
But his Labour shadow Liam Byrne accused Mr Duncan Smith of misleading MPs and the public about the state of the new system.But his Labour shadow Liam Byrne accused Mr Duncan Smith of misleading MPs and the public about the state of the new system.
"It is now quite clear that Iain Duncan Smith has lost all control of his department and, frankly, he has now lost control of the truth," he told BBC News."It is now quite clear that Iain Duncan Smith has lost all control of his department and, frankly, he has now lost control of the truth," he told BBC News.
"This is a damning report. It shows they started work without knowing what they were doing, millions in IT spend has been written off and there are no counter-fraud measures worth their name." "This is a damning report. It shows they started work without knowing what they were doing, millions in IT spend has been written off and there are no counter-fraud measures worth their name.
Mr Byrne, who is currently quizzing Mr Duncan Smith on the NAO report in the Commons, said the timetable set out by the minister will be impossible to meet and his officials have told auditors they are reconsidering it.
"We want to know how he has left Parliament with the impression that everything is on track when the NAO says actually there are major problems."We want to know how he has left Parliament with the impression that everything is on track when the NAO says actually there are major problems.
"Mr Duncan Smith is saying one thing to Parliament and his officials are confirming something entirely different with the nation's auditors.""Mr Duncan Smith is saying one thing to Parliament and his officials are confirming something entirely different with the nation's auditors."
Mr Byrne has called for cross-party talks to get universal credit back on track, something rejected by the government. 'On time'
Mr Byrne clashed with his Conservative opposite number in the Commons, telling him: "You must apologise to the House and you must now convene cross-party talks to get this project back on track. The quiet man must not become the cover-up man."
Mr Duncan Smith said he had identified the same problems with universal credit as the NAO after launching an independent review of the project last summer and they had now been fixed by bringing in new management from outside the civil service.
He repeatedly told MPs the NAO report was "historic" and universal credit would be delivered "on time and in budget". He blamed the problems on a lack of "professionalism" and a "culture of secrecy" among the team of civil servants originally in charge of the programme.
Under the government's plans, six key means-tested benefits - jobseeker's allowance, employment support allowance, housing benefit, working tax credit, income support and child tax credit - are to be combined into a single payment which ministers say will ensure that claimants are always better off in work and also reduce fraud.Under the government's plans, six key means-tested benefits - jobseeker's allowance, employment support allowance, housing benefit, working tax credit, income support and child tax credit - are to be combined into a single payment which ministers say will ensure that claimants are always better off in work and also reduce fraud.
The transformation, championed by Mr Duncan Smith, requires the merging of complex computer systems in benefits offices, HM Revenue and Customs and local councils - which the government insists can be done.The transformation, championed by Mr Duncan Smith, requires the merging of complex computer systems in benefits offices, HM Revenue and Customs and local councils - which the government insists can be done.
All new claimants were supposed to receive the universal credit from next month as part of a phased implementation plan but this has been delayed following a number of pilots earlier this year.All new claimants were supposed to receive the universal credit from next month as part of a phased implementation plan but this has been delayed following a number of pilots earlier this year.
'Poor governance''Poor governance'
Instead, new claimants at six "hub job centres" in England, Wales and Scotland will receive the new benefit from October.Instead, new claimants at six "hub job centres" in England, Wales and Scotland will receive the new benefit from October.
The watchdog's report identified "early setbacks", and says: "At this early stage of the Universal Credit programme the department has not achieved value for money. The watchdog's report identified "early setbacks", and said: "At this early stage of the universal credit programme the department has not achieved value for money.
"The department has delayed rolling out Universal Credit to claimants, has had weak control of the programme, and has been unable to assess the value of the systems it spent over £300 million to develop. "These problems represent a significant setback to universal credit and raise wider concerns about the department's ability to deal with weak programme management, over-optimistic timescales, and a lack of openness about progress."
"These problems represent a significant setback to Universal Credit and raise wider concerns about the department's ability to deal with weak programme management, over-optimistic timescales, and a lack of openness about progress."
The report said there was still potential for universal credit to bring about "considerable benefits" if the department put "realistic plans and strong discipline in place".The report said there was still potential for universal credit to bring about "considerable benefits" if the department put "realistic plans and strong discipline in place".
The setbacks the watchdog identified include:The setbacks the watchdog identified include:
Expenditure on IT systems has accounted for more than 70% of the £425m spent to date but the report suggested officials do not yet know whether the infrastructure in place will support a national rollout.Expenditure on IT systems has accounted for more than 70% of the £425m spent to date but the report suggested officials do not yet know whether the infrastructure in place will support a national rollout.
While steps were taken at the end of 2012 to get to grips with some of the problems, the watchdog said the "underlying issues" had not been addressed and there was no "detailed view" about how the system was supposed to work. While steps were taken at the end of 2012 to get to grips with some of the problems, the watchdog said the "underlying issues" had not been addressed.
Amyas Morse, the head of the National Audit Office, said the "relatively high risk trajectory" was met by "weak management, ineffective control and poor governance".Amyas Morse, the head of the National Audit Office, said the "relatively high risk trajectory" was met by "weak management, ineffective control and poor governance".
'Missteps''Missteps'
The project suffered a tragic setback earlier this year when Philip Langsdale, the DWP's chief information officer, died four months after taking over responsibility for it.The project suffered a tragic setback earlier this year when Philip Langsdale, the DWP's chief information officer, died four months after taking over responsibility for it.
The man drafted in over the summer to take over the running of universal credit has admitted there have been "missteps".The man drafted in over the summer to take over the running of universal credit has admitted there have been "missteps".
"It's clear to me there were examples of poor project management in the past, a lack of transparency where the focus was too much on what was going well and not enough on what wasn't and with suppliers not managed as they should have been," Howard Shiplee told the Daily Telegraph - while claiming things had been "put right"."It's clear to me there were examples of poor project management in the past, a lack of transparency where the focus was too much on what was going well and not enough on what wasn't and with suppliers not managed as they should have been," Howard Shiplee told the Daily Telegraph - while claiming things had been "put right".
"I'm not in the business of making excuses, and I think it's always important to acknowledge in any project where things may have gone wrong in order to ensure we learn as we go forward," the former London 2012 executive added."I'm not in the business of making excuses, and I think it's always important to acknowledge in any project where things may have gone wrong in order to ensure we learn as we go forward," the former London 2012 executive added.
Labour accused ministers of trying to cover up a "Titanic-sized IT disaster" while trade unions said the watchdog's report was a "damning indictment" of the state of the project.