Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Deferred
DWP asserts UC outperforms Jobseeker’s Allowance despite inability to measure direct economic benefits
Conclusion
The Department told us that it could not measure the economic benefits of extra people being in work as it could not create two versions of the economy – one with UC and one without. However, it said that its comparative evaluations had consistently shown that UC outperformed Jobseeker’s Allowance, which was itself, according to the OECD, one of the most efficient labour market regimes in the world. The Department also highlighted the increase in the lone parent employment rate, from around 45% in the mid-1990s to around 66% now, as evidence that the policy interventions of successive governments, including UC, were having the desired effect.18
Government Response Summary
The government acknowledges the difficulty of evaluation, reaffirms existing evidence, and states that a post-project review will take place six months after the Universal Credit transformation program closes to assess benefits realised.
Government Response
Deferred
HM Government
Deferred
1.6 The Committee has acknowledged the difficulty of evaluating whether Universal Credit has achieved the objective of getting 200,000 more people into work in steady state, given the lack of a counterfactual for the legacy system. However, the department has presented robust evidence that Universal Credit is having a positive impact on the labour market for some sub-groups of the population claiming Universal Credit. 1.7 The methodology relating to the 200,000 employment impact estimate was published and followed the relevant Green Book guidance to provide a rigorous assessment of the expected economic benefits. Further details can be found in the published version of the Universal Credit Business Case. 1.8 As part of standard assurance processes with major projects, the department is required to make arrangements for a post project review to take place six months after the change programme responsible for delivering the transformation to Universal Credit closes. This review will include looking at the benefits realised and how those align with the policy intention and the programme’s objectives. The Evaluation Task Force will support the department in any further evaluation work to inform this.