Universal Credit

Lord Touhig Excerpts

Thursday 20th October 2011 Lords Chamber

Asked By

[Lord Touhig]

To ask Her Majesty’s Government whether the proposed universal credit is included in the Treasury’s risk register of projects that are at risk of overspending, delay or failure.

[Lord Wallace of Saltaire]

My Lords, there is no specific Treasury risk register, although I know that the phrase has been used in a number of newspaper articles. The Treasury works closely with colleagues in the Cabinet Office’s Major Projects Authority to monitor the progress of major projects. The universal credit programme is on the Government’s major projects portfolio, which is a compilation of the Government’s high-risk and high-value projects. It covers approximately 200 major projects with a total value in excess of £300 billion. The Major Projects Authority has been engaged with the universal credit programme since 2010. As well as providing challenge through regular assurance reviews, it is involved at various levels of monitoring progress. The Major Projects Review Group, a body established by the previous Government in 2007, recently also considered progress with the universal credit programme.

[Lord Touhig]

My Lords, I thank the Minister for his Answer but I am a little surprised by it. To make universal credit work, the Government say that 80 per cent of all claims will need to be made online. At the moment, 31 per cent of the poorest families in this country have never used a computer and only 17 per cent of benefit claims are made online. On top of that, to make the IT system for the new universal credit work it will require every single employer in the United Kingdom to tell the Inland Revenue every single month how much every single employee earns in salary and pays in tax. As most government IT projects in recent times have failed, why does the Minister think that this one will succeed?

[Lord Wallace of Saltaire]

There were several questions underneath what the noble Lord has just said. Twenty per cent of those who will come under the universal credit system are currently estimated to have access to computers. It is planned that 50 per cent should have access by 2013 and 80 per cent by 2017. I myself queried those figures when I was being briefed but I am told that of those currently claiming unemployment benefit, some 80 per cent have access to online facilities and of those claiming jobseeker’s allowance, some 60 per cent have access. I did not ask what the gender breakdown was; I suspect the answer is that more men than women have it but I remind everyone that the Government’s current digital champion, Martha Lane Fox, is working on this.