Covid-19: Universal Credit

Lord Bird Excerpts

Tuesday 2nd March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

The noble Lord is right to raise the point about people who try to abuse the system with no right to do so. The situation with fraud and recovering sums is being dealt with in the department. To give the best response in the time I have available, I will write to the noble Lord and place a copy of the letter in the Library.

[Lord Bird (CB)]

When universal credit was first put together, one big thing was to cut through bureaucracy and waste. I would like to think that we have moved towards reducing the ways in which people can get on universal credit. Obviously, there are many problems for people who want to go on to it, and they are still having to wait a long time. My question is more about the long-term effect of universal credit. How much does it cost to actually deliver £1 of social support, because in the old days it used to be about a fiver to deliver that £1?

[Baroness Stedman-Scott (Con)]

I not sure where the noble Lord gets his figures from; I do not dispute them, but I will have to go back and have a good look. The universal credit business case was agreed in 2018 and demonstrated that it remains deliverable and affordable, and provides value for money. In a steady state, universal credit will generate economic value of £8 billion per year, and it is doing a great job.