Esther McVey made incorrect statements to MPs over universal credit roll out, says government spending watchdog

Whitehall’s spending watchdog has rebuked cabinet minister Esther McVey for misrepresenting their critical report on the roll-out of universal credit with a series of inaccurate claims to MPs.

The National Audit Office (NAO) took the highly unusual step after the work and pensions secretary dismissed the catalogue of failings outlined by auditors last month in their report into the government’s flagship welfare programme.

In his open letter to Ms McVey, which is likely to raise questions about her future as a cabinet minister, Auditor General Sir Amyas Morse said that elements of her statement to Parliament on the report were incorrect and unproven.

He said it was “odd” that Ms McVey told MPs that the NAO did not take into account recent changes in the administration of universal credit, when the report had in fact been “fully agreed” with senior officials at the Department for Work and Pensions only days earlier.

Sir Amyas added that Ms McVey's claim that the NAO was concerned that Universal Credit was rolling out too slowly was “not correct”.

Her assurance, in response to the report, that Universal Credit was working was also “not proven”, said Sir Amyas.

In its report on June 15, the NAO highlighted the hardship caused to claimants by delays in receiving payments under universal credit.

It concluded that the new system - being gradually introduced to replace a number of benefits - was “not value for money now, and that its future value for money is unproven”.

The report also accused the government of not showing sufficient sensitivity towards some claimants and failing to monitor how many are having problems with the programme, or have suffered hardship.

In his letter, Sir Amyas told Ms McVey: “Our report was fully agreed with senior officials in your Department. It is based on the most accurate and up-to-date information from your Department. Your Department confirmed this to me in writing on Wednesday June 6 and we then reached final agreement on the report on Friday June 8.

“It is odd that by Friday June 15 you felt able to say that the NAO 'did not take into account the impact of our recent changes'.

“You reiterated these statements on July 2 but we have seen no evidence of such impacts nor fresh information.”

Sir Amyas added: “Your statement on July 2 that the NAO was concerned Universal Credit is currently 'rolling out too slowly' and needs to 'continue at a faster rate' is also not correct.”

And he told Ms McVey: “Your statement in response to my report, claiming that Universal Credit is working, has not been proven.

“The Department has not measured how many Universal Credit claimants are having difficulties and hardship. What we do know from the Department's surveys is that although 83% of claimants responding said they were satisfied with the Department's customer service, 40% of them said they were experiencing financial difficulties and 25% said they couldn't make an online claim.

“We also know that 20% of claimants are not paid in full on time and that the Department cannot measure the exact number of additional people in employment as a result of Universal Credit.”

The Auditor General said that he had written to Ms McVey on June 27 asking for a meeting to discuss her comments, and was publishing his open letter “reluctantly” because he had not yet been able to see her.

The Independent has contacted the Department for Work and Pensions for comment.