Universal Credit is the biggest folly in history and cannot work even in theory AND will see the overall ‘welfare’ bill rise by £24 billion per year.
The key issue that all UC advocates miss is that it has a one-stop-shop assessment for welfare benefits and child and working tax credits, or ‘welfare.’ Instead of claiming welfare benefits from DWP and Housing Benefit from you council and instead of HMRC for Tax Credits, UC rolls this into one claim and one point of call and with a one-stop assessment for ALL ‘welfare.’
This means that the UC applicant will receive ALL the ‘welfare’ they are ENTITLED TO.
The latest figures from DWP say that around £16 billion per year of welfare benefits goes unclaimed yet when UC replaces the current system that £16 billion will have to be paid.
HMRC’s latest estimate is that around £8.4 billion per year of working tax credits and child tax credits goes unclaimed and similarly when UC replaces the current system that £8.4 billion per year will have to be paid.
Hence when (or if?) Universal Credit does fully roll out it means that government will have to pay out this combined £24 billion per year MORE in ‘welfare’ than it does now. Every one of the 7.7 million who will move to UC will get every penny of ‘welfare’ and not a penny more and not a penny less.
If anyone can give me a reasoned argument why the above will not happen then please let me know because there isn’t one.
I am happy that everyone will get precisely what they are ENTITLED TO in welfare and it is only right and proper that they do. Yet where will this and all other future governments get the additional £24 billion per year to pay for UC?
The full details of what goes unclaimed, this £24 billion per year and £66 million per day with all the official sources for it is contained here.
A simple table I used is below and shows that DWP say between £11.994 billion and £15.657 billion is entitled yet goes unclaimed in just 5 welfare benefits.
The reason for restating all of the above is that Stephen Crabb has made his first public speech after taking over from IDS and is restating the same bull and bluster about Universal Credit as IDS did.
Yet what is truly incredulous is that his opposite number Owen Smith still believes that Universal Credit was and is “a great idea!”
Mr Crabb’s opposite number, Labour’s Owen Smith, said Universal Credit was a “great idea” but warned of the impact of spending cuts, calling on the minister to carry out a “thorough review”.
The simple point and fact that Universal Credit will have to pay out what the current system does not – the benefits and tax credits entitled to that go unclaimed – means that UC is monumentally stupid for any government of any political party to bring in as it will cost £24 billion per year more.
So while I am happy that ‘welfare’ claimants will received all they are entitled to, the question is where the hell is government going to find the money to pay for that?
Answers on a back of a fag packet to ….