Cabinet minister: Universal credit scheme will fail

Whitehall sources say that the scheme is deemed to pose a significant risk.

11:51 31 December 2012

Universal credit scheme, which aims to solve the problem of paying people not to work – raises some serious concerns among senior figures. One cabinet member said that “it is a disaster in the making” while Whitehall sources say that it is deemed to pose a significant risk.

The initiative’s pilot scheme is scheduled to start in April while the national roll-out is expected to happen in October. The main objective is to make it pay to work in order to reduce unemployment rate and in-work handouts.

However, senior figures, including Chancellor George Osborne aren’t quite sure that the initiative will be rolled on as scheduled. A cabinet member has reportedly told some sources that the information technology needed for the £2billion-project is nowhere near ready. He added: “It’s a disaster waiting to happen.” In addition, a Whitehall source has confirmed that the initiative is included on the Treasury’s “watch-list” of projects that pose a significant risk.

However, a spokesman for the Department for Work and Pension disagrees. He said: ‘Universal Credit is on time and under budget. It will start to be rolled out nationally from October 2013, making three million households better off and ensuring work always pays.’