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Fit-to-work tests: Atos quits contract Fit-to-work tests: Atos quits contract
(35 minutes later)
Atos is to quit its contract to assess whether benefits claimants are fit to work, the government has announced. Atos is quitting its contract to assess whether benefits claimants in Britain are fit to work, the government says.
It follows government criticism over "significant quality failures".It follows government criticism over "significant quality failures".
Disabilities Minister Mike Penning said a new company would be appointed in early 2015, and Atos would not receive "a single penny of compensation".Disabilities Minister Mike Penning said a new company would be appointed in early 2015, and Atos would not receive "a single penny of compensation".
Atos, whose contract had been due to end in August 2015, had previously said it would carry on with the tests until a new company could be put in place. The company, whose contract had been due to end in August 2015, said it had "reached a settlement that is in the best interests of all parties".
Claimants applying for employment and support allowance must take a work-capability assessment to see how their disability or illness affects their ability to work. It said it would "work hard to support transition to a new provider", adding: "We will be transferring our infrastructure and employees to ensure consistency of service to those going through the process.
"There will be no change for those applying for employment and support allowance."
Atos will continue to carry out the assessments in Northern Ireland under a separate contract.
Substantial settlement
Claimants applying for the allowance must take a work-capability assessment to see how their disability or illness affects their ability to work.
Disability campaigners have described the work tests as "ridiculously harsh and extremely unfair".Disability campaigners have described the work tests as "ridiculously harsh and extremely unfair".
Last summer, the Department for Work and Pensions (DWP) identified "significant quality failures" in the written reports Atos produced after tests and put a plan for improvement in place.Last summer, the Department for Work and Pensions (DWP) identified "significant quality failures" in the written reports Atos produced after tests and put a plan for improvement in place.
But in February, the DWP said standards had declined unacceptably.But in February, the DWP said standards had declined unacceptably.
Mr Penning said the government was looking for a provider to replace Atos "with the view to increasing the number of assessments and reducing waiting times".Mr Penning said the government was looking for a provider to replace Atos "with the view to increasing the number of assessments and reducing waiting times".
He said: "I am pleased to confirm that Atos will not receive a single penny of compensation from the taxpayer for the early termination of their contract.He said: "I am pleased to confirm that Atos will not receive a single penny of compensation from the taxpayer for the early termination of their contract.
"Quite the contrary, Atos has made a substantial financial settlement to the department.""Quite the contrary, Atos has made a substantial financial settlement to the department."
The DWP said "one national provider" would be appointed to take over the contract early next year.
In the longer term, it said, it planned to take on "multiple providers to increase competition".
'Flexible' provider
Atos chief executive Ursula Morgenstern said: "We are pleased to have reached an agreement with the government to allow us to exit this contract early and we remain committed to delivering essential services to the UK government as a strategic supplier."
She said the company would "work hard to support transition to a new provider".
"We have supported and been flexible in implementing all the changes asked of us from the reviews of the work capability assessment process," she added.
Atos said it would continue to carry out assessments for the personal independence payment (PIP) - another welfare change introduced by the government - in Scotland, the north of England, London and the south of England.
What do you think of the proposals? Have you undergone Work Capability Assessments? Email us at haveyoursay@bbc.co.uk adding 'Atos' in the subject heading and include your contact details.What do you think of the proposals? Have you undergone Work Capability Assessments? Email us at haveyoursay@bbc.co.uk adding 'Atos' in the subject heading and include your contact details.