Esther McVey facing accusations she is still misleading MPs over universal credit criticisms

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Esther McVey is facing accusations that she is still misleading MPs about a watchdog’s severe criticisms of universal credit, as she faced fresh calls to resign.

Dragged to the Commons for the second successive day, the work and pensions secretary continued to insist that the National Audit Office (NAO) warnings about the controversial new benefit were out of date – something it has rejected.

Ms McVey also again refused to agree with the NAO’s call for the shake-up to be “paused” because its effect was “not proven” – arguing changes introduced since had improved it.

Frank Field, the head of the work and pensions committee – who has accused Ms McVey of dishonest behaviour worthy of Donald Trump – said she had still failed to apologise fully for misleading MPs.

Labour said she “should be ashamed” for having to explain herself a second time, adding: “She should resign.”

Ms McVey also revealed she had backed down and agreed to meet the head of the NAO, Sir Amyas Morse, on Monday, to discuss the controversy.

However, she drew further criticism when she continued to deny that universal credit had “not been proven”, telling MPs: “That is where we differ on the conclusions.”

In its extraordinary letter, rapping the work and pensions secretary for failing to represent its conclusions correctly, the NAO pointed out it made changes to its data up until last month.

But Ms McVey told MPs the report had been overtaken to cuts to the waiting time for initial payments and improvements on housing benefit and advanced payments.

“The impact of those changes are still being felt and, therefore, the definition can’t be that they have been fully taken into account in the NAO,” she claimed.

But Margaret Greenwood, Labour’s shadow work and pensions secretary, said: “The secretary of state should be ashamed that she has been forced to come to this House again.”

And she added: “If she misread this report so badly this brings in to question her competence and her judgment.

“If she did read the report and chose to misrepresent its findings, she has clearly broken the ministerial code. Either way, she should resign.”

The row cast huge doubt on Ms McVey’s position because the ministerial code states that ministers must give accurate and truthful information to parliament.

She claimed that “no one” had asked her to appear to make her apology, arguing it was voluntary – but would almost certainly have had to resign if she had not done so.

The government has insisted that the £15.8bn universal credit shake-up, to squeeze six separate benefits into a single payment, is on track.

However, the public accounts committee will pile on further pressure when it questions officials from Ms McVey’s department on Monday.

In his letter, Sir Amyas made clear he was writing because he had not been able to set up a meeting with the work and pensions secretary.

It said her department had “not measured how many claimants are having difficulties”, while 40 per cent of them reported problems and 25 per cent said they couldn’t make an online claim.