The universal credit is the government's next big train wreck
Welfare reform could go so massively wrong, even the intelligence services are worried.
By Rafael Behr Published 05 October 2012 13:50
Even if the process for awarding the West Coast rail franchise was bungled by civil servants, it is politically disastrous for the government for a number of reasons. First, voters don’t want to hear politicians blaming their officials, even when the blame is deserved. Second, if ministers seize on the episode as an opportunity to accelerate civil service reform – as they surely will – the long-standing Cold War between Whitehall and the government will heat up, with inevitable leaks, briefings and other mischief that can destabilise an administration.
Third, David Cameron’s governing philosophy is famously obscure and coalition with the Lib Dems curtails his room for policy manoeuvre, so demonstrating the ability to competently implement existing policy is vital for the Prime Minister’s prospects at the next election.
When asked about the plan for recovering public support, senior figures in both coalition parties these days talk about “delivery” – showing that the government is actually getting on with the business of repairing the national finances and sorting out “Labour’s mess”. It is all about rolling up the sleeves and looking like a professional administration, hired by the electorate to do a tough old job. (Check out how often Cameron is photographed with his sleeves literally rolled up.) Labour, by contrast, can then be depicted as deranged fantasists, avoiding tough choices and banging on about weird abstractions instead of talking practical sense, rolling up their sle… you get the idea.
So it looks bad when the “delivery phase” doesn’t deliver and the competence file gets corrupted. Right now, Downing Street should be thinking very hard about what the next part of the programme to unravel will be and taking some pre-emptive measures. There are two obvious candidates.
First, the election of police commissioners. Hardly anyone knows this is happening although the votes are due to be held in England and Wales on 15 November. Turnout will be dismal and, by all accounts, the calibre of candidates is low. This was supposed to be a flagship reform, a great democratisation, a ballot box incarnation of "the big society". It looks like being a bunch of single-issue council seat by-elections.
Second, the universal credit (UC). This is a big one – the epic reconfiguration of the benefits system with a view to making work more lucrative than claiming welfare is due to be rolled out from October next year. Hardly anyone in Whitehall thinks this will happen. It is a vast project that requires complex IT systems, the effective commissioning of which is not an area where the civil service has famously distinguished itself in the past. One particular cause of concern is a plan to introduce “real time” data transfer from employers to the department for work and pensions - via HMRC – so that changes in someone’s work and pay status can filter through automatically to their benefit payments.
This experiment in massive inter-departmental exchange of highly sensitive private data combined with payments worth billions of pounds has the potential to go spectacularly wrong. I understand from a well-placed source that the intelligence services are taking a close interest in the administration of universal credit because they fear it will compromise national cyber-security. Well-organised criminal hackers (or indeed other foreign intelligence agencies) could break into the system to commit colossal fraud or otherwise sabotage government business.
Separately, those who witness the administration of the welfare system on the ground – whether in job centres or through citizens’ advice bureaux – are reporting a steep rise in cases of misallocations, errors and general bungling that means some very vulnerable people aren’t getting the money they need. The question being asked with increasing urgency (but still mostly in private) by pretty much everyone involved in welfare policy is this: if the DWP can’t seem to administer the existing benefits system properly, how on earth are they going to manage the switch to UC?
It doesn’t help that Iain Duncan Smith, the Secretary of State responsible for the whole thing, has a thin skin. Officials, charities and advisors from other departments report a culture of prickly denial at the top of the DWP. To hear the way “stakeholders” tell it, if you suggest there are problems with the UC implementation, it is inferred that you do not believe in IDS and, as an enemy of the project, are frozen out. If this is true there is serious trouble ahead.
One remarkable feature of both the police commissioners and universal credit policy accidents waiting to happen is that no-one seems to know who in Number 10 is supposed to be across these things. One of the most frequent complaints from Tories about the Downing Street operation is that there aren’t enough people with really sound political antennae keeping a strategic eye on other departments. Too much, it is said, is being done by civil servants who work on practical measures but don’t keep their ears to the ground for the sound of an incoming stampede of bad headlines.
Maybe the current turmoil in the Department of Transport could never have been foreseen. Some storms do appear from nowhere. But some can be detected by radar long before they hit the shore. There is a hurricane gathering over the DWP and when the wind picks up and the bad news starts raining down, Cameron should be prepared.
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12 comments
Unversal Credit is a sick idea thought up by a very sick minded individual - I give you - Mr Iain Duncan Smith MP.
Batman says
"Vote for Commissioner Gordon".
"making work more lucrative than claiming welfare "
For Labour this is like a visitation by the devil. Labour (unions) will do everything it can to obstruction the country moving in this direction whatever the policy. The party will also penalise all those who want to work hard to earn more.
The "Agile" IT project only covers c. 200 developers based in Warrington who are working on the front end Web screens, not exactly rocket science. The remaining thousands of developers are working using traditional Big IT methods on the technical integration of 200+ creaking DWP systems from the 1970's and 90's. To add to the risk of Big IT delivery, the suppliers (Accenture, IBM, HP, et al) decided to outsource the work offshore to avoid paying IT professionals in the UK who work for more than minimum wage (and pay taxes). Think "Big Ship approaching Iceberg".
The "On time and on budget" mantra of denial coming out of DWP in the face of reasoned warnings is both untrue and injudicious. Use of Agile on 1% of a project does not allow you to repeat the sophistry that "the project is on time because we never look further than the next development cycle" (leap or sprint in techie jargon). The fact is that the backend system integration is at least two years away and has caused ministers to backpedal from an October 2013 date for all new claimants to most by April 2013. And the project has already gone £100M over budget.
Now with questions over Local Council Tax removing the incentive to work, childcare costing more than people will be paid and dragging over a million low income working people into the same conditionality as people claiming benefits, you have to wonder when the violins will stop playing on deck and everyone will head for the lifeboats, leaving Captain Duncan Smith to go down with his ship.
Odd, I work on the UC IT and I am British, working in the UK and not in Warrington, had more than enough Kanbans to make Olga Corbett go bendy at the knees and don't know where you get your figures from.
Its not staff costs that are driving up this projects costs, nor is it hardware but I would take a closer look at the constant demand for expensive COTs products and the amount of complex bespoke work required to make them fit, it is about time we went back to real development and not factory COTs work
Odd, I work on the UC IT and I am British, working in the UK and not in Warrington, had more than enough Kanbans to make Olga Corbett go bendy at the knees and don't know where you get your figures from.
Its not staff costs that are driving up this projects costs, nor is it hardware but I would take a closer look at the constant demand for expensive COTs products and the amount of complex bespoke work required to make them fit, it is about time we went back to real development and not factory COTs work
That should have said "most by April 2014". Damn you offshore Android spellchecker developers!
Let's hope it works, the concept is so fundamentally simple. You don't earn more on benefits than in work and that is the way it should be. The safety net would be warped if this was not the case. It does need to properly managed and i'm sure the brightest minds in the civil service will make it happen.
I have no evidence of this, but I'd be very surprised if both the rail omnishambles and any fiasco emanating from DWP don't have the grubby fingerprints of the big management consultancies all over them. It's virtually inconceivable that something like rail franchise reprocurement would not have been largely run by consultants with civil servants technically accountable, but far removed from the actual work. The same is also likely to be the case with something as complex as universal tax credits.
Funny how this aspect of failure rarely seems to be reviealed.
Becoming increasingly clear that the benefits system is being turned into a system of coercive reeducation rife with banal cruelty and a wide range of punishments. Just the qualities that make Tories beam with pride. Job done. After all, if you can make the mere process of claiming a state benefit viciously demeaning and unpleasant then automatically employment will start to look attractive by c0mparison. Regardless of whether the money is any better than the benefit. Is that what they mean by making work pay?
It is interesting the increasing amount of coverage regarding cyber security and Universal Credit. I wonder if perhaps the seed of an excuse has been actively planted to cover the possibility of late delivery of the IT in April 2013?
Security is a good one as it is very difficult to disprove when anonymous sources from shadowy organisations tell off the record of increased threat that is too secret to give the public any specifics about.
It's a much more palatable excuse than "it's late because we overpromised" or "too many benefit claimants can't get online" or "exchanging information with HMRC is just difficult at a practical level".
It is interesting the increasing amount of coverage regarding cyber security and Universal Credit. I wonder if perhaps the seed of an excuse has been actively planted to cover the possibility of late delivery of the IT in April 2013?
Security is a good one as it is very difficult to disprove when annoymous sources from shadowy organisations tell off the record of increased threat that is too secret to give the public any specifics about.
It's a much more palatable excuse than "it's late because we overpromised" or "too many benefit claimants can't get online" or "exchanging information with HMRC is just difficult at a practical level".