Universal credit benefits system hit by setbacks

Spending watchdog said that the welfare reform is poor value for money and overambitious.

13:57 05 September 2013

The government’s flagship welfare reform, which has been delayed due to IT glitches, is described by spending watchdog as poor value for money and overambitious. Work and Pensions Secretary Iain Duncan, who said that the IT glitches that caused the delay had now been fixed, said that the reform will be delivered within budget and with the timescale.

However, Labour Shadow Liam Byrne isn’t convinced. In fact, he accused Mr Duncan of issuing misleading statements. He said: "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.”

"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.

"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."