31st December 2010

Senior officials at the Department of Work and Pensions
have privately conceded that the complex IT systems that Universal Credit needs
will not be ready in time. Particularly problematic is the
“real-time” link with the HMRC which will feed up-to-date earnings
data into the Universal Credit. In IT terms, the complexity of this part of the
project is mind-blowing. It is a mammoth commission, the kind which will almost
certainly be delayed by months or even years.

Universal-Credit.org has heard that no software supplier
has yet come forward to bid for the contract.

The White Paper for Universal Credit cleverly builds-in a
margin of error for delays: careful reading of it reveals that the start date
for Universal Credit is given as a range of dates, namely October 2013 to April
2014, rather than a date (see box below for wording). Cynics reckon this gives
6 months leeway, yet allowing the Government to claim they are still within the
stated timeframe.

But we at Universal-Credit.org think this is nowhere near
enough leeway to allow for the inevitable IT delay. The Government will be
forced to decide between forging-ahead with non-ideal IT (maybe by dropping the
real-time earnings link with HMRC, or by simplifying the structure of the
Universal Credit itself), or accepting a long delay.  A long delay may not be politically
acceptable. Currently, the concept of Universal Credit has been quite
well-received in the media and by the public, as well as receiving cross-party
support. But good will can evaporate very quickly in the world of politics.

This is what the White Paper says, at point 21, Chapter
4:

“A
provisional timetable has been developed with a view to completing the
transfer to Universal Credit by October 2017:

October 2013 to April
2014:

All new claims for
out-of-work support are treated as claims to Universal Credit. No new
Jobseeker’s Allowance, Employment and Support Allowance, Income
Support and Housing Benefit claims will be accepted. Customers
transitioning from out-of-work benefits into work will move onto Universal
Credit if they are eligible.”