Welfare reform 'will cost taxpayer �1.4bn'

By Adam Bienkov

The government's flagship welfare schemes are in "chaos" and set to cost taxpayers £1.4bn Labour will claim today.

Speaking at an event in London, shadow work and pension secretary Liam Byrne will argue that many of the government's planned welfare cuts will cost more than they save.

"Nobody wants to see a department that can't get the basics right - but that doesn't mean we can run away from the problem," he is expected to say.

"And there is no escaping the fact the government's failure will end up costing the taxpayer a staggering £1.4 billion by the end of this parliament."

He will say that while Labour supports Iain Duncan Smith's universal credit scheme "in principle" the implementation had become a "joke".

“There is now a private joke in Whitehall. To err is human. But to really foul things up you need Iain Duncan Smith. It is beginning to feel like every single major reform is in crisis," he will say.

Earlier this year the Major Projects Authority found that the survival of nine major projects at the Department of Work and Pensions was in doubt.

Addressing Iain Duncan Smith's universal credit scheme, it said: "Successful delivery of the project is in doubt, with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed, and whether resolution is feasible."

Byrne will today offer cross party talks to try and fix the scheme.

"Universal Credit is a good idea in principle but the implementation is a disaster," he will say.

“If Iain Duncan Smith won’t save Universal Credit, then Labour will have to prepare to clean up his mess.”

Byrne will claim that a whole series of Duncan Smith's welfare schemes were running over budget.

He will say that the government's youth contract scheme which provides apprenticeships and work experience for unemployed young people, will cost taxpayers an extra £457m in 2014-15.

However, sources at the DWP said today that Byrne had miscalulated and that the true figure was much lower.

A spokesperson for Iain Duncan Smith accused Byrne of a "last-ditch attempt to keep his job in the shadow cabinet" following rumours that he is set to be forced out in a forthcoming reshuffle.

They added that "Labour is panicking – after a summer of discontent, here is yet another disastrous speech, void of any ideas."