The shadow work and pensions secretary told delegates at the Labour Party conference in Brighton that Labour will act to save the coalition government’s flagship welfare reform.
Mr Byrne said: ‘When the welfare state was started its big idea was to minimise disruption to earnings.
‘Now our task is different – it is to maximise potential of earnings.
‘That is why we need universal credit to work, so if the government won’t act to save it we will.
‘The [Conservative Party’s] system may prove dead on arrival, so we need a better way, so today we announce our universal credit rescue committee.’
Mr Byrne added that a campaign for a living wage will also be needed ‘because it is wrong that we are spending the nation’s tax credits propping up low pay at firms with rising profits’.
Labour has also promised a compulsory jobs guarantee under which anyone out of work for two years will receive a job offer. If the offer is turned down benefits will be stopped.
Under universal credit several benefits, including housing benefit, will be merged into one payment direct to households. The coalition argues it will simplify the system and make work pay. The roll out of the scheme has been delayed and the Department for Work and Pensions’ management of the project has come under fire.