Rishi Sunak says he was prevented from increasing benefits more in spring statement because of Old computer system used by the Department for Work and pensions.
recognizing that technical problems “sounds like excuse,” the British chancellor told Bloomberg that he discussed higher rise than 3.1% indicated in board but they said that the rise can only be once a year for people on some benefits.
Sunak emphasized growth in “national living wage, ie. changes to the universal credit cone rate and discretionary support from advice as a measure government made for help the lowest paid.
But claim of computer problems was called “pathetic” by Jonathan Ashworth, a shadow work and the secretary’s pensions, while Angela Rayner, Labor deputy leader, said the chancellor “insults your intellect”.
Many experts believe that an increase in benefits would be the fastest and most effective way of helping the lowest paid with compression on standard of living caused by inflation.
government got under fire for a 3% increase in benefits when inflation is at 7% and is projected to hit 10% by the end of in year.
“Operation of our welfare system technically complicated” Sunak said. “Not necessarily possible to [increase benefits] for all. Many of systems built so it can only be done once a year decision was filmed quite a while ago.”
He admitted that he blamed technology “sounds like excuse” but insisted that he was “somewhat limited to the operation of welfare system”.
Ashworth stressed that speed with which ministers acted to forfeit £20 in universal credit provided people during a pandemic, the largest single reduction social security never. “Shame on Sunaku computer didn’t give it up, he added.
reported last month when the Chancellor considered raising benefits for more than 3.1%, but that the Ministry of Finance was told that “you can only do this once a year and it was not the time of year so you can do it.”
problem considered obsolete IT system which distributes certain inherited benefits such as unemployment benefits and employment and support permission.
Both are phased out replaced by universal credit, but hundreds of thousands of people remain on old schemes that use IT system about 40 years old.
Changes in previous benefit payments seem to be fixed in autumn in order arrive to spring.
They are driven by paper-based systems and outdated, inflexible IT systems that take months to process. changes while universal credit updates can be performed in question of weeks.
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representative for the Department for Jobs and Pensions said: “Parliament voted to complete the complex web of six inherited benefits in 2012 and how it is work coming to an end in 2024 we are fully transitioning to a modern allowance suitable for the 21st century.
“We acknowledge the pressure people are facing with in cost of life, so we provide support worth £22 billion next financial year including our family support fund.
“Parliament voted in March 2022 to raise benefits as usual.”
