Universal Credit has "not achieved value for money", warns NAO

More bad news for Duncan Smith as the National Audit Office says there are "considerable weaknesses" in the department's financial controls over the programme.

Conveniently for Iain Duncan Smith, this year's DWP accounts were not published to coincide with his appearance at the work and pensions select committee yesterday; some may say it's now clear why.

In the accounts, which have now been released, the National Audit Office states that Universal Credit has "not achieved value for money", noting that the DWP has written off £40.1m of assets developed for the programme "as it will never use them" and that "it also now expects to write down £91.0 million of the remaining assets to nil value by March 2018, due to the considerable reduction in their expected useful life." The head of the NAO comments: "While this is the appropriate accounting treatment, it should not detract from the underlying issue that the Department has spent £91.0 million on assets that will only support a limited service for 5 years, with clear consequences for public value." In addition, it notes that there were "considerable weaknesses" in the department’s financial controls over Universal Credit and that the "size and complexity" of the programme "stretched the Department’s capacity and capability". 

Here's the statement Margaret Hodge, the head of the public accounts committee, has issued on the "truly shocking" figures. 

In 2012-13, the Department for Work and Pensions had to write-off £40.1m for assets that were developed for the implementation of the universal credit system but which they will now never use. They now tell us they will also have to write-off another £91m of assets over the next five years.

Whilst these figures are truly shocking, I do not think we have heard the end of this matter and would not be surprised if further write-offs emerge over the coming period. It is deeply depressing that DWP has chosen to pour more money into the existing IT system in what seems like a short-term fix, rather than showing the confidence and foresight to come up with a solution that will truly stand the test of time.

Even for those people who transfer to the new benefit, the online system is currently not able to deal with issues like frequent changes of circumstances, claims if a couple splits up, or conditionality.

In more bad news for IDS, the report also shows that the amount of money lost to fraud and error in the benefits system has risen from £3.2bn (2% of the total budget) last year to £3.5bn (2.1%). Of this total, £700m (0.4%) was lost due to official error, £1.6bn (0.9%) to claimant error and £1.2bn (0.7%) to fraud. 

Incidentally, it's worth noting that the latter figure is lower than the amount lost last year due to benefit underpayments: £1.4bn (0.9%). But don't expect the DWP to publicise that in its briefings. 

Iain Duncan Smith speaks at the Conservative conference in Manchester earlier this year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The Telegraph’s bizarre list of 100 reasons to be happy about Brexit

“Old-fashioned light bulbs”, “crooked cucumbers”, and “new vocabulary”.

As the economy teeters on the verge of oblivion, and the Prime Minister grapples with steering the UK around a black hole of political turmoil, the Telegraph is making the best of a bad situation.

The paper has posted a video labelled “100 reasons to embrace Brexit”. Obviously the precise number is “zero”, but that didn’t stop it filling the blanks with some rather bizarre reasons, floating before the viewer to an inevitable Jerusalem soundtrack:

Cheap tennis balls

At last. Tennis balls are no longer reserved for the gilded eurocrat elite.

Keep paper licences

I can’t trust it unless I can get it wet so it disintegrates, or I can throw it in the bin by mistake, or lose it when I’m clearing out my filing cabinet. It’s only authentic that way.

New hangover cures

What?

Stronger vacuums

An end to the miserable years of desperately trying to hoover up dust by inhaling close to the carpet.

Old-fashioned light bulbs

I like my electricals filled with mercury and coated in lead paint, ideally.

No more EU elections

Because the democratic aspect of the European Union was something we never obsessed over in the run-up to the referendum.

End working time directive

At last, I don’t even have to go to the trouble of opting out of over-working! I will automatically be exploited!

Drop green targets

Most people don’t have time to worry about the future of our planet. Some don’t even know where their next tennis ball will come from.

No more wind farms

Renewable energy sources, infrastructure and investment – what a bore.

Blue passports

I like my personal identification how I like my rinse.

UK passport lane

Oh good, an unadulterated queue of British tourists. Just mind the vomit, beer spillage and flakes of sunburnt skin while you wait.

No fridge red tape

Free the fridge!

Pounds and ounces

Units of measurement are definitely top of voters’ priorities. Way above the economy, health service, and even a smidgen higher than equality of tennis ball access.

Straight bananas

Wait, what kind of bananas do Brexiteers want? Didn’t they want to protect bendy ones? Either way, this is as persistent a myth as the slapstick banana skin trope.

Crooked cucumbers

I don’t understand.

Small kiwi fruits

Fair enough. They were getting a bit above their station, weren’t they.

No EU flags in UK

They are a disgusting colour and design. An eyesore everywhere you look…in the uh zero places that fly them here.

Kent champagne

To celebrate Ukip cleaning up the east coast, right?

No olive oil bans

Finally, we can put our reliable, Mediterranean weather and multiple olive groves to proper use.

No clinical trials red tape

What is there to regulate?

No Turkey EU worries

True, we don’t have to worry. Because there is NO WAY AND NEVER WAS.

No kettle restrictions

Free the kettle! All kitchen appliances’ lives matter!

Less EU X-factor

What is this?

Ditto with BGT

I really don’t get this.

New vocabulary

Mainly racist slurs, right?

Keep our UN seat

Until that in/out UN referendum, of course.

No EU human rights laws

Yeah, got a bit fed up with my human rights tbh.

Herbal remedy boost

At last, a chance to be treated with medicine that doesn’t work.

Others will follow [picture of dominos]

Hooray! The economic collapse of countries surrounding us upon whose trade and labour we rely, one by one!

Better English team

Ah, because we can replace them with more qualified players under an Australian-style points-based system, you mean?

High-powered hairdryers

An end to the miserable years of desperately trying to dry my hair by yawning on it.

She would’ve wanted it [picture of Margaret Thatcher]

Well, I’m convinced.

I'm a mole, innit.