LABOUR accused the government yesterday of having a “warped sense of priorities” after Work and Pensions Secretary Stephen Crabb pushed ahead with his universal credit scheme despite reports that the plans were flawed.

According to new research by the Resolution Foundation, 2.5 million working families would lose over £2,100 a year under the new welfare scheme.

But Mr Crabb insisted that universal credit (UC), which rolls seven different benefits into a single payment, was motivating jobseekers to find work.