Thursday, 28 Nov 2024

Universal Credit rollout hit with further delay at a cost of £500m

The rollout of Universal Credit has been delayed again at a cost of half a billion pounds.

The Conservatives’ much-criticised flagship welfare reform is now not expected to be fully introduced until September 2024 – nine months later than previously estimated.

The Department for Work and Pensions (DWP) said on Monday that the delay was due to 900,000 more claimants than expected remaining on the legacy welfare schemes that Universal Credit is replacing.

Universal Credit has long been criticised for fuelling a rise in food bank use, as well as for numerous delays.

The DWP said the delay will cost an extra £500 million, because claimants will continue to receive higher payments before they are moved to Universal Credit at later dates.

DWP minister Will Quince said: “Universal Credit is the biggest change to the welfare system in a generation, bringing together six overlapping benefits into one monthly payment and offering support to some of the most vulnerable people in society.

“It is right that we revisit our forecasts, and plan and re-plan accordingly, ensuring that the process is working well for people on benefits.

“Claimants will not lose money due to this forecasting change.”

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