Universal Credit: Duncan Smith's master plan is grinding to a halt

The new welfare system will now be piloted in just one area, rather than four, next month.

When a government department sneaks out a press release the night before the start of the Easter weekend, it's a sure sign that it's trying to bury bad news. The news, in this instance, is that Universal Credit, Iain Duncan Smith's master plan to reform welfare, has all but ground to a halt. After previously planning to trial the scheme - which will replace six of the main benefits with a single payment - in four areas this April, the Department for Work and Pensions announced that it now would do so in just one. A single jobcentre, Ashton-under-Lyne, will accept claims for Universal Credit from 29 April, with the other three pilot areas, Wigan, Warrington and Oldham, not doing so until July. The national rollout is finally due to begin in October but ministers have yet to say when existing claimants will be moved over.

This transparent attempt to narrow the scope for failure is unsurprising. In recent months it has become almost impossible to find anyone in Whitehall who believes Universal Credit will work. This is principally due to the fantastically complex computer system on which the reform depends. In theory, benefit payments will be automatically adjusted as earnings vary, ensuring that claimants are always better off in employment than out of work. But that relies on real-time data transfers between HM Revenue and Customs and the Department for Work and Pensions, a system that few place their faith in. Earlier this year, ministers were forced to admit that it was failing 25 per cent of the time in private testing. With Universal Credit payments based on incomplete or incorrect salary information, the danger is that claimants will not receive the benefits they are entitled to.

Shadow work and pensions secretary Liam Byrne said: "The truth is the IT for Universal Credit appears to be nowhere near ready.  Universal Credit calculations depend on salary data from HMRC's new PAYE Real Time Information system.  Obligations for small firms to provide PAYE data on or before each employee payment have recently been delayed from April until October.  And DWP are so worried they are now barring access to their five main contractors.

“This scheme is now on the edge of disaster. ministers must admit this project is in crisis and start to fix it now – before millions of families tax credits are put at risk."

It was concerns over Universal Credit that prompted David Cameron to try and move Duncan Smith during last year's cabinet reshuffle. A replacement, it was hoped, might be more amenable to changes. But the Work and Pensions Secretary would not budge. Having devoted years in opposition and in government to the programme, he had no intention of being absent at the birth. Reluctantly, then, Cameron allowed him to remain in place. But with the government's reputation, as well that of Duncan Smith's, now staked on the reforms, he may yet come to regret his pusillanimity.

Work and Pensions Secretary Iain Duncan Smith outside Number 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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