How the coalition has scaled back Universal Credit yet again

The new welfare system has been launched in just one new area, Hammersmith, rather than six as planned.

The DWP is busy trumpeting the expansion of Universal Credit today, but what it won't mention is that the programme has been scaled back yet again. UC, which aims to replace six of the main benefits and tax credits with a single payment, was originally due apply to all new claimants of out of work benefits from this month but in July, after it was given an "amber-red" rating by the Major Projects Authority (denoting a project in danger of failure), ministers announced that it would be introduced in just six "hub jobcentres" - Hammersmith, Rugby, Inverness, Harrogate, Bath and Shotton - alongside the existing four "pathfinders" (the latter representing just 1,000 claimants).

Three months on, we learn that it will now be launched in just one of the planned six jobcentres, Hammersmith and Fulham (rather misleadingly announced by the DWP as "Universal Credit expands to London"), with the other five not due to join the scheme until next spring. In addition, as I've previously reported, the only group of claimants included will be single people claiming Jobseeker's Allowance. As Labour MP Glenda Jackson noted at a recent work and pensions select committee hearing, "The people you are actually testing are a small number, the simplest of cases. How an earth are you going to achieve the evidence that you keep telling us you are going to learn from when the cohort is so narrow and so simple?"

It was last month, in an excoriating report, that the National Audit Office warned that "throughout the programme the Department has lacked a detailed view of how Universal Credit is meant to work", that the 2017 national roll-out date is in serious doubt, that the department "has not achieved value for money", with £34m of IT programmes written off, that the current IT system "lacks the ability to identify potentially fraudulent claims" and that the DWP repeatedly ignored warnings about the viability of the project.

Iain Duncan Smith recenty told the work and pensions select committee that he was merely following advice from MPs "not to go too fast" but as Labour chair Anne Begg replied, "There's rushing it and there's a snail pace".

Having once promised a welfare revolution, it is clear that the government's priority is now damage limitation.

Iain Duncan Smith arrives for a cabinet meeting at 10 Downing Street in May 2012. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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