Universal credit scheme faces withering criticism from MPs

Management described as "extraordinarily poor" and "alarmingly weak" in new report

Deputy Political Editor

Iain Duncan Smith’s flagship benefit reform faces withering criticism today from MPs over “shocking” mistakes that have squandered at least £140m of taxpayers’ money.

The universal credit scheme, which replaces six means-tested benefits and tax credits, is due to be rolled out nationally between 2014 and 2017.

But in a new report the Public Accounts Committee denounced the “extraordinarily poor” and “alarmingly weak” management of the planned programmes.

It said secretaries had been allowed to authorise purchase orders worth more than £20m. In some cases it is unclear what suppliers have been paid for.

The PAC questioned whether the reform can be fully delivered by 2017, branding a pilot “inadequate” and vulnerable to fraud.

It said the Department for Work and Pensions had “neglected to implement basic procedures for monitoring and authorising expenditure”.

The committee added that some computer equipment had to be written off. Initial estimates suggest the write-offs could amount to at least £140m, although the final figure could be higher.

A DWP spokeswoman said: “Universal Credit is a vital reform that rewards work instead of trapping people on benefits. It will ultimately bring a £38bn economic benefit to society.

“This report doesn’t take into account our new leadership team, or our progress on delivery. We have already taken comprehensive action including strengthening governance, supplier management and financial controls.”

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Business Travel Consultant

£20000 - £26000 per annum: Recruitment Genius: With offices in London, Manches...

Recruitment Genius: Stock Broker / Trainee Broker / Closer - OTE £250,000

£30000 - £250000 per annum: Recruitment Genius: Stock Broker/ Trainee FX, Stoc...

Guru Careers: Software Developer / Web Developer (PHP / MYSQL)

£30 - 40k + Benefits & Bonus: Guru Careers: A Software / Web Developer (PHP / ...

Recruitment Genius: ICT Operations Manager

Negotiable: Recruitment Genius: This company is the single governing and regul...

Day In a Page

A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests
Mexico: A culture that celebrates darkness as an essential part of life

The dark side of Mexico

A culture that celebrates darkness as an essential part of life
Being sexually assaulted was not your fault, Chrissie Hynde. Don't tell other victims it was theirs

Being sexually assaulted was not your fault, Chrissie Hynde

Please don't tell other victims it was theirs
A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935