More trouble for IDS: how claimants are unprepared for Universal Credit

Ahead of Duncan Smith's grilling by MPs, a new study shows 92 per cent of claimants are unprepared for the new system in at least one area.

Iain Duncan Smith will be grilled by MPs on Wednesday about the progress (or lack of) in implementing Universal Credit and there's further evidence today of why so many across Whitehall are troubled by the Work and Pensions Secretary's grand projet

Three months before UC, which will replace six of the main means-tested benefits and tax credits with a single payment, is introduced nationally, the first independent survey of recipients by Citizens Advice has found that 92 per cent are unprepared for the new system in at least one area. Changes that will be introduced include monthly, rather than weekly or fortnightly, payments, a new online system for accessing benefits and the direct payment of housing benefit to claimants, rather than landlords. 

Previous research has found that claimants believe monthly payment will make it harder for them to budget and this concern is reinforced by the Citizens Advice study, with three-quarters saying they could not alone "keep track of my money on a monthly basis". In addition, two-thirds say they will need help to "get online and manage my universal credit account". One claimant, Derek Mallet, from Birmingham, said he was "concerned about having to use the internet in order to set up and get benefits. I have never been on a computer." This unpreparedness, Citizens Advice says, is "widespread across people of all backgrounds and ages".

In response, the charity is pushing for the government to allow claimants to request fortnightly rather than monthly payments and for their rent to be paid directly to their landlord for the first year of the new system. Gillian Guy said: "Our report shows that an overwhelming majority of people do not feel ready to deal with universal credit. Our findings must act as a wake-up call for government.

"The results demonstrate yet again how vital it is that implementing universal credit is not left to chance. There is clearly a breakdown in the system if 90% of potential claimants are not ready to deal with this major change to their payments, and ministers must act urgently to address this problem."

For now, the DWP insists that it is working with "councils, social landlords and community groups, including Citizens Advice, to offer support" to claimants. But if Universal Credit is not to become, in Labour's words, "universal chaos", it does look increasingly likely that Duncan Smith will have to accept the changes urged by Citizens Advice and others. 

Work and Pensions Secretary Iain Duncan Smith speaks at last year's Conservative conference in Birmingham. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.