Labour slams welfare 'chaos'

Labour will today blame "chaos" at the Department for Work and Pensions (DWP) for extra bills of £1.4 billion to the taxpayer.

'Biggest cost' to DWP will be extra job seekers

Key points from Mr Byrne's speech will include:

  • The biggest cost will come from extra job seeker allowance claims because of the slow take-up of the youth contract.
  • Current targets will be missed by 92 percent which will cost the Treasury by £457 million.
  • Implementing universal credit will cost £300 million, failures by Atos £287 million and work programme £140 million.
  • The bedroom tax will cost £102.5 million.
  • Rising fraud and error cost the Treasury £140 million.

Delivery costs could be cut, not benefits, say Labour

Liam Byrne is expected to propose Labour focus on the costs of "delivery problems", such as the cost of implementing universal credit, before they tackle benefits:

Labour will bring Social Security spending under control by tackling the long-term drivers of spending.

The first thing we are going to have to do is put out the fires currently spreading through Iain Duncan Smith's Department for Work and Pensions.

We need to tackle these delivery problems head-on before they eat up even more public money.

Because three years into this Government, their promised welfare revolution has collapsed because of a failure in basic delivery.

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Labour: DWP causing 'chaos' with reforms

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DWP reforms cause "chaos" to the benefits system. Credit: PA

The taxpayer is facing bills of an extra £1.4 billion because of the "chaos" at the Department for Work and Pensions (DWP) who are ushering in huge changes to the benefit system, Labour will say.

The low take-up rates for youth contracts, rising fraud, problems in the delivery of work capability assessments and the cost of implementing universal credit will all be criticised in a speech by Liam Byrne.

Shadow work and pensions secretary will claim bills for Iain Duncan-Smith's reforms will run into the next Parliament.

Mr Byrne will repeat Labour's call for a bankers' bonus tax to fund a jobs guarantee for young people.