IDS urged to come clean on 'secret business case' behind Universal Credit

Published by 24publishing for 24dash.com in Housing and also in Central Government, Local Government

Work and pensions secretary Iain Duncan Smith says the Government has "absolutely nothing to hide" around the cost of implementing Universal Credit amid concern from Labour that it is concealing hidden costs.

From next year, Universal Credit will replace six income-related benefits, including housing benefit, and will see claimants receive a single monthly payment directly.

IDS' assurances came ahead of a Commons debate on Universal Credit today, with Labour further probing how the far-reaching changes will be implemented and their final cost.

In a Commons exchange yesterday, Labour's Liam Byrne, the shadow work and pensions secretary, asked Mr Duncan Smith if there is something he's trying to hide after highlighting two estimates around the cost of implementing the reform.

Mr Byrne said: "When Universal Credit is fully rolled out in 2017, the Office for Budget Responsibility (OBR) says that the extra costs will be £3.1bn. The Treasury in its budget says that the price must be no more than £2.5bn. With whose estimate does the Secretary of State agree?"

Mr Duncan Smith said the OBR had adjusted its estimate down to £2.5bn in line with the Government's stated estimates in the Budget.

However, Mr Byrne, who on the weekend warned the reform to the benefits system was a "car crash about to happen", said the Opposition "simply cannot accept a think-tank set up by the Treasury putting the figure at £3.1bn and the Treasury, in the March Budget, revising it down to £2.5bn".

He said: "The secretary of state must accept, as I am sure many in the House do, that an extra £600m will have a huge impact on whether people will be better off in work or on benefits. The Treasury clearly believes there is a state of chaos around Universal Credit, as do the Cabinet Office and No. 10. Surely it is time he tells the House exactly what is going on, and sets before us the business case that he is trying to keep secret from us. Is there something he is trying to hide?"

Mr Duncan Smith said there is "absolutely nothing to hide". He said: "We are committed to the £2.5bn all the way through and we will deliver Universal Credit on time, as it is and on budget. Any time he would like, he is welcome to come into the office and look through some of our business matters."

Mr Duncan Smith said the department was also putting in place facilities so that people may receive their money on an interim two-weekly basis if they are unable to cope. It follows concerns from charities, councils and support groups that the shake-up to the benefits system could harm the most vulnerable.

He said: "The most important thing is that, by trying to move people, eventually, on to a monthly payment, that will bring them much more into line with the world of work. One of the great problems we have had is that, when people who have been unemployed go into work, they find it very difficult to cope with having to suddenly take on and manage their arrangements. The key thing is that we want to get those who can do so to that point, and we will work with the others. For some, there may be interim two-weekly payments. At the moment, we are looking to trial a whole series of arrangements to make that much easier for them, and we will make sure that that happens."