Universal Credit

Lord Clinton-Davis Excerpts

Wednesday 10th December 2014 Lords Chamber

Asked by

[Lord Clinton-Davis]

To ask Her Majesty’s Government what is their response to the recent analysis by the Office for Budget Responsibility on the rollout of universal credit.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

In the OBR’s independent forecast of public spending, it has assumed a modest adjustment to the rollout for universal credit, which it says has a comparatively small impact on forecast expenditure. We maintain our determination to deliver the plan already set out which has been assured by the Major Projects Authority and signed off by the Treasury. The plan is on track. Universal credit will bring economic benefits of £7 billion every year.

--- Later in debate ---

[Lord Clinton-Davis (Lab)]

Both eminent bodies, the OBR and the IFS, forecast that the policy of the Government is reducing the state to its lowest level since the early 1930s. That is utterly different from what the Minister is predicting. Is not that dire consequence possible? It is utter madness, is it not? Does the Minister dispute the conclusions of both bodies? What is his prognosis?

[Lord Freud]

Well, my Lords, I will talk about universal credit and what it aims to do for the people who need support from the state system. It directs our funding far more efficiently to people who need that support. It produces economic benefits of £7 billion every year and it does so at an investment cost of £1.8 billion. That investment cost is down from the £2.4 billion that we originally envisaged.