Universal Credit

Baroness Hodge of Barking Excerpts

Wednesday 9th July 2014 Commons Chamber

[Mr Duncan Smith]

Absolutely. The Labour Government—the Labour party needs to own up to this—used to sign off business cases from day one, only to see the programme crash and burn. Tax credits left 400,000 people without money, and their reforms to the health service benefits system were an absolute disaster. We will take no lessons from Labour on how to manage a programme.

[Margaret Hodge (Barking) (Lab)]

As Chair of the Public Accounts Committee, I support the intent of the policy, but I have repeatedly sought assurances on the status of universal credit. On Monday, I asked Sir Jeremy Heywood, Sir Nick Macpherson and Sir Bob Kerslake four times whether the business case had been signed off by the Treasury. There were a number of unscripted pauses, but Sir Jeremy told us:

“I cannot speak for the Treasury.”

Sir Nick Macpherson told us:

“It is signed up, up to a point”,

before Bob Kerslake finally admitted:

“I think we should not beat about the bush. It has not been signed off.”

I plead with the Secretary of State that he should be open and honest with hon. Members rather than hide behind smoke and mirrors to create a false impression that universal credit is on time, in budget and delivering in full its intended objectives.

[Mr Duncan Smith]

I respect the right hon. Lady enormously for the job she does, but I say to her clearly that it was on the recommendations of her Committee and the NAO that we instigated—by the way, I think this is the way ahead for all future programmes—a programme in which, at every stage and in every separate part of development, we would have approvals from the Treasury and with the Cabinet Office, which is what is going on at the moment. My point is that the answer that Mr Kerslake, the head of the civil service, gave was correct in the sense, as I have said today, that the overall strategic business case for the full lifetime of the programme is in discussion right now for that completion. However, all the elements that are relevant—the strategic business plan for this Parliament, which includes all the roll-out, all the investments, of which the right hon. Lady will be aware, and the roll-out through to the north-west—have been approved. There will be no further need for approvals this Parliament, so the reality is quite clear: universal credit is on track and is rolling against the plan we set out last year. All those approvals are agreed, and we hope that the final element, which would logically come at the end of the process, will be agreed shortly with the Chief Secretary.