Catherine McKinnell MP, Labour’s Shadow Treasury Minister, responding to reports that real time information will be delayed for small businesses, said:
“Labour has been calling for the Government to listen to small business on this issue for months now, and to review whether they were ready to cope with such a significant change, particularly in the current difficult economic climate.
“Despite frequent reassurances from Ministers that small businesses were ready for the introduction of RTI, we now have yet another u-turn from the Government - and only a matter of days before these changes were due to take place.
“The Government has clearly failed to communicate this policy properly, and simply hasn’t grasped the red-tape burden it will place on SMEs who are already struggling. This is really worrying, given the absolutely vital role RTI will play in delivering Universal Credit, which is already delayed and over-budget.”
Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, said:
“Universal Credit has descended into total disarray. We were promised the plan was on track but now we find out it’s a train crash.
“It is quite clear that no-one is ready for these changes, and the bungling DWP has completely failed to prepare the ground and now millions of families’ tax credits are at risk.”