A NATIONAL Audit Office report has concluded that Universal Credit has not delivered value for money and it is uncertain that it ever will. But it has warned: “There’s no going back!”

Released last week, the report finds that “Universal Credit has taken significantly longer to roll out than intended, may cost more than the benefits system it replaces, and the Department for Work and Pensions will never be able to measure whether it has achieved its stated goal of increasing employment”.

According to the National Audit Office, since last reporting on Universal Credit in 2014, “the department has made some progress in managing the programme but has itself admitted that it cannot measure whether Universal Credit will lead to its economic aim of getting an additional 200,000 people into work”.

“Universal Credit may also cost more to administer than the previous system of benefits it replaces, with current running costs at £699 per claim, against an ambition of £173 per claim by 2024-25,” the report found.

“The roll out has been considerably slower than was initially intended. It was due to complete in October 2017, but after a number of problems, eight years later only around 10 per cent of the final expected caseload are currently claiming Universal Credit.

“The department’s research states that satisfaction among claimants of Universal Credit and those claiming benefits under the previous system is generally comparable to what it replaces. However, in a recent survey by the department, four-in-10 of claimants who were surveyed stated that they were experiencing financial difficulties.

“The department does not accept that Universal Credit has caused hardship among claimants but the National Audit Office has seen evidence from local and national bodies that many people have suffered difficulties and hardship during the roll out of the full service.”

The National Audit Office goes on to state that “the department has not shown sufficient sensitivity toward some claimants and that it does not know how many claimants are having problems with the programme or have suffered hardship.

“In 2017, around one quarter (113,000) of new claims were not paid in full on time.

“Late payments were delayed on average by four weeks, but from January to October 2017, 40 per cent of those affected by late payments waited in total around 11 weeks or more, and 20 per cent waited almost five months.

“Despite improvements in payment timeliness, in March 2018 21 per cent of new claimants did not receive their full entitlement on time, with 13 per cent receiving no payment on time.

“The department does not anticipate payment timeliness to improve significantly in 2018.

“On this basis, the National Audit Office estimates that between 270,000 and 338,000 new claimants will not be paid in full at the end of their first assessment period throughout 2018.

“Those with more complex cases are more likely to be paid late.

“The department believes it will never achieve 100 per cent payment timeliness because it needs by law to verify the claimants’ eligibility.

“The department expected most claimants would have enough money to cope over the initial waiting period after their claim is submitted (previously six weeks, now five). In reality, nearly 60 per cent of new claimants (around 56,000 per month) receive a Universal Credit advance to help them manage before receiving their first payment.”

The NAO report goes on to reveal thatincreases in rent arrears since the introduction of Universal Credit in an area, which claimants can often take up to a year to repay, have been reported by local authorities, housing associations and landlords. Some private landlords told the National Audit Office that they have become reluctant to rent to Universal Credit claimants.

And in three of the four areas the National Audit Office visited, and for which data was available, the use of foodbanks increased more rapidly after Universal Credit full service was rolled out to the area.

This agrees with the Trussell Trust’s report showing upsurges of 30 per cent in foodbank use in the six months after Universal Credit rolls out to an area, compared to 12 per cent in non-Universal Credit areas.

But there is no going back, and the report concludes: “The programme has necessitated a number of changes which have become increasingly embedded across the department. It would be so complex and costly to return to legacy benefits at this stage that the National Audit Office believes there is no practical alternative but to continue with Universal Credit.”