David Cameron has signalled that his government's flagship welfare policy could be delayed just days after the minister in charge insisted the project was on time and on budget.

The Prime Minister told MPs that no-one should be "religious on timing" when it came to the £2.4bn Universal Credit scheme.

Labour last night said the Coalition's promises on the project had been "shot to pieces".

Designed to replace a whole range of benefits, Universal Credit is at the centre of the Tory-Lib Dem Coalition plans to ensure that work always pays.

But the scheme has been beset by a number of complications and delays.

A highly critical report by the National Audit Office this week warned that the project still faced major difficulties.