Universal Credit

Lord German Excerpts

Thursday 20th October 2011 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, the careful mechanisms currently being put in place and operating recognise precisely that this is an extremely important programme, which is to be rolled out starting two years from now and running until 2017. I should add, as I was also asked about the novelty of some of these IT programmes, that the DWP is working to integrate roughly 60 per cent of existing IT infrastructure, which will be transferred to this programme. It is not an entirely novel programme: only 40 per cent of its IT will be novel.

[Lord German]

My Lords, following on from that answer, will my noble friend reassure the House that the DWP’s programme is being introduced in a gradualist way over a number of years? That will give some comfort, but what matters is getting the data into the DWP—the tube of data which comes from every company and through the HMRC. Will my noble friend also reassure the House that that tube will be open, finished and working on time, and that he will tell the House in advance if there was any danger regarding that?

[Lord Wallace of Saltaire]

My Lords, I am not entirely sure what an open tube looks like but the DWP is of course working closely with HMRC. As noble Lords are well aware, the integration of HMRC systems with those of the DWP is an important part of this programme. We are all conscious that previous programmes, particularly on tax credits, have run into a very considerable number of problems about both underpayment and overpayment, and about underclaiming. It is intended that one of the great benefits of the universal credit system will be that a much higher percentage of claimants will claim and receive their entitlements.