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The hidden £40.6m costs of Universal Credit project delays

October 22, 2014

The Universal Credit project is over a year late in starting a significant geographical roll-out. Local Authorities had expected to be transferring their processing of Housing Benefit to the Department for Work and Pensions (DWP) by now.

Delay

Last year Local Authorities claimed up to £40.6m subsidies to cover
the hidden costs of Universal Credit delays

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Notes:

1. Hidden in the DWP’s annual accounts is the line item “Other Programme Expenditure” which includes “subsidies paid by way of a grant to local authorities who administer and pay Housing Benefit”. This figure has grown to £40.6m to April 2014.

Subsidies

2. Dividing ‘Other Programme Expenditure’ into the 5,060 claimants actually receiving Universal Credit as at the April accounts year end = £7,198 per claimant.  Of course we cannot be sure that all of the £40.6m relates to this subsidy, but DWP have not broken down this hidden figure.

Source: DWP accounts April 2014 p.104

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From → Agile Governance

2 Comments
  1. Reblogged this on nearlydead.

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