Away from Liverpool, the big stories of the day are the markets’ reaction to the
putative Eurozone deal, which has been mixed so far, and the Telegraph’s splash about the progress of the Universal Credit, the coalition’s
flagship welfare reform. The scheme is designed to simplify the benefits system and save circa £5 billion a year by reducing the scope for claims to be duplicated and errors made; it is a
crucial cog in the coalition’s plan to make work pay.
James Kirkup reports that the Treasury has apparently put the credit at the top of its “to watch” list of government projects that are at risk of running over schedule, over budget or
failing to be launched at all. Kirkup writes, ‘A team of senior Whitehall officials and industry experts has been assigned to investigate the development of the single payment, which
is due to replace several different benefits in 2013. Concerns centre on the ability of HM Revenue and Customs, which will have a central role in delivering Universal Credit, to meet its
deadlines. HMRC chiefs are understood to have privately told ministers of their concerns about the timetable.’
This is not the first time the Treasury and the DWP have clashed over IDS’ reforms. Osborne and IDS apparently had titanic battles in Cabinet about the ambitious and initially expensive welfare reforms during discussions about the
comprehensive spending review. It will be a test of IDS to overcome any bureaucratic intransigence he encounters to ensure that his crucial reforms are delivered. The DWP say that it is confident
the credit will be introduced on time and on target.
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