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| Version 1 | Version 2 |
|---|---|
| Universal Credit: New benefit rolled out to families | Universal Credit: New benefit rolled out to families |
| (about 3 hours later) | |
| The government's flagship welfare reform programme Universal Credit is being extended, with parents able to claim it for the first time. | The government's flagship welfare reform programme Universal Credit is being extended, with parents able to claim it for the first time. |
| The change will initially apply to parents in parts of north-west England. | The change will initially apply to parents in parts of north-west England. |
| The credit, which merges six working-age benefits into a single payment, had previously been available only to single people and couples. | The credit, which merges six working-age benefits into a single payment, had previously been available only to single people and couples. |
| The reform has been hit by delays and the National Audit Office previously said it was poor value for money. | The reform has been hit by delays and the National Audit Office previously said it was poor value for money. |
| But Work and Pensions Secretary Iain Duncan Smith insisted he had decided to roll out the system "carefully" with all the systems "tested", unlike Labour's tax credits. | But Work and Pensions Secretary Iain Duncan Smith insisted he had decided to roll out the system "carefully" with all the systems "tested", unlike Labour's tax credits. |
| Criticism | Criticism |
| "Would you rather us take a gamble and throw everything at it at once? Have a problem like tax credits where nobody got their money and was a real disaster?" he told BBC Radio 4's Today programme. | "Would you rather us take a gamble and throw everything at it at once? Have a problem like tax credits where nobody got their money and was a real disaster?" he told BBC Radio 4's Today programme. |
| "Or would you rather have it as the Independent Major Projects Authority said to us as they reviewed it in the last few months? They said: 'This is the right way to roll out a programme so that it de-risks the roll out and ensures that the people who need this money... get the money....' That's the important thing surely?" | "Or would you rather have it as the Independent Major Projects Authority said to us as they reviewed it in the last few months? They said: 'This is the right way to roll out a programme so that it de-risks the roll out and ensures that the people who need this money... get the money....' That's the important thing surely?" |
| The Universal Credit system merges six working-age benefits - income-based jobseeker's allowance, income-related employment and support allowance, income support, child tax credit, working tax credit and housing benefit - into a single payment in a far-reaching change designed to encourage work and reduce fraud. | The Universal Credit system merges six working-age benefits - income-based jobseeker's allowance, income-related employment and support allowance, income support, child tax credit, working tax credit and housing benefit - into a single payment in a far-reaching change designed to encourage work and reduce fraud. |
| Analysis | Analysis |
| BBC social affairs correspondent Mark Easton | BBC social affairs correspondent Mark Easton |
| Universal Credit has been hailed by the government as a revolution in welfare provision, bringing together six existing benefits, including jobseeker's allowance and housing benefit. | Universal Credit has been hailed by the government as a revolution in welfare provision, bringing together six existing benefits, including jobseeker's allowance and housing benefit. |
| But the scheme has been beset by problems - tens of millions of pounds have been written off due to technical problems and only 20,000 people are currently claiming it, rather than the one million initially envisaged by ministers. | But the scheme has been beset by problems - tens of millions of pounds have been written off due to technical problems and only 20,000 people are currently claiming it, rather than the one million initially envisaged by ministers. |
| Those who are already receiving it have been mainly single people with no housing costs, but from today parents in a small part of the north west of England will be able to apply. | Those who are already receiving it have been mainly single people with no housing costs, but from today parents in a small part of the north west of England will be able to apply. |
| If they're eligible, they'll be able to get much more extensive help with child care costs than under existing benefit rules. | If they're eligible, they'll be able to get much more extensive help with child care costs than under existing benefit rules. |
| The expansion to more complex cases will be a key test of Universal Credit's robustness, and it's IT system in particular. | The expansion to more complex cases will be a key test of Universal Credit's robustness, and it's IT system in particular. |
| The National Audit Office, which said in a report last year that Universal Credit was not achieving value for money, is due to deliver another assessment on Wednesday. | The National Audit Office, which said in a report last year that Universal Credit was not achieving value for money, is due to deliver another assessment on Wednesday. |
| Couples with children and lone parents will now be able to claim Universal Credit worth up to 70% of childcare costs, with a monthly limit for one child of £532, and £912 for two or more children. | Couples with children and lone parents will now be able to claim Universal Credit worth up to 70% of childcare costs, with a monthly limit for one child of £532, and £912 for two or more children. |
| It is already available to single and couple claimants in over 80 job centres in England, Wales and Scotland and will be available in nearly 100 Jobcentres by Christmas, the Department of Work and Pensions (DWP) said. | It is already available to single and couple claimants in over 80 job centres in England, Wales and Scotland and will be available in nearly 100 Jobcentres by Christmas, the Department of Work and Pensions (DWP) said. |
| The DWP originally promised to have one million people on Universal Credit by April 2014, but the project has been delayed a number of times since its creation and MPs have criticised the way it has been managed. | The DWP originally promised to have one million people on Universal Credit by April 2014, but the project has been delayed a number of times since its creation and MPs have criticised the way it has been managed. |
| Shadow work and pensions secretary Rachel Reeves said Labour would "pause" Universal Credit if it wins the 2015 general election. | |
| She disputed Mr Duncan Smith's claim that almost 40,000 people were claiming the new benefit, describing the programme as "a complete shambles". | |
| "The latest figures from the Department for Work and Pensions show just 17,850 people are claiming Universal Credit, less than one per cent of the million people Iain Duncan Smith said would be on the new benefit in April 2014," she said. | |
| 'Restoring fairness' | 'Restoring fairness' |
| But Mr Duncan Smith argued that "almost 40,000 people are claiming" the new benefit and it would be available in a third of Jobcentres by Spring 2015. | But Mr Duncan Smith argued that "almost 40,000 people are claiming" the new benefit and it would be available in a third of Jobcentres by Spring 2015. |
| He had deliberately chosen to ensure it was landed "safely and carefully", he said. | He had deliberately chosen to ensure it was landed "safely and carefully", he said. |
| "I think this is the way in which almost every other programme that involves IT and major change should be rolled out - carefully, tested first, learn the results, make the changes and roll it out to the majority," he told Today. | "I think this is the way in which almost every other programme that involves IT and major change should be rolled out - carefully, tested first, learn the results, make the changes and roll it out to the majority," he told Today. |
| He added: "Universal Credit is bringing welfare into the 21st Century by restoring fairness to the system and making work pay in a modern labour market. | He added: "Universal Credit is bringing welfare into the 21st Century by restoring fairness to the system and making work pay in a modern labour market. |
| "As part of our long-term economic plan, today sees the next stage of this welfare revolution bringing families on board with extra childcare support and flexibility for employers. By spring next year one in three jobcentres will be offering the new benefit." | "As part of our long-term economic plan, today sees the next stage of this welfare revolution bringing families on board with extra childcare support and flexibility for employers. By spring next year one in three jobcentres will be offering the new benefit." |
| 'Stop' childcare debt | |
| The DWP says research suggested that those on Universal Credit report that they are working more over a six-month period, and that people find the welfare reform easier to understand. | |
| But Matthew Reed, chief executive of The Children's Society, said changes were needed to the new system, which will affect seven million children - half of all children in the UK - to ensure "work really does pay". | |
| "Free school meals must be available to all children on Universal Credit and action taken to stop the poorest families from facing childcare debt," he said. | |
| "Support with childcare costs must be made upfront, rather than reimbursed, so this system truly benefits the families that need it most." | |
| Are you a parent who has just started to receive Universal Credit? If you are happy to speak to the BBC please email us at haveyoursay@bbc.co.uk and remember to leave your contact details. | |
| Have your say | Have your say |