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Watchdog attacks the government's handling 'fiasco' of disability payouts Watchdog attacks the government's handling 'fiasco' of disability payouts
(about 14 hours later)
The government's handling of personal independence payments (Pips) has been "nothing short of a fiasco" that has caused distress to thousands of sick and disabled people, parliament's public spending watchdog has found.The government's handling of personal independence payments (Pips) has been "nothing short of a fiasco" that has caused distress to thousands of sick and disabled people, parliament's public spending watchdog has found.
The outsourcing firm Atos is singled out for criticism in a report issued on Friday by the public accounts committee, for misleading the Department for Work and Pensions (DWP) about its capabilities when bidding for the £1bn contracts.The outsourcing firm Atos is singled out for criticism in a report issued on Friday by the public accounts committee, for misleading the Department for Work and Pensions (DWP) about its capabilities when bidding for the £1bn contracts.
The report found many claims were delayed by more than six months, with some claimants taken to hospital due to the stress of the process and being unable to afford medically prescribed diets.The report found many claims were delayed by more than six months, with some claimants taken to hospital due to the stress of the process and being unable to afford medically prescribed diets.
Pips are a benefit introduced to replace the disability living allowance (DLA), which ministers said was being abused by fraudulent claimants. Private companies such as Atos have been contracted to assess eligibility.Pips are a benefit introduced to replace the disability living allowance (DLA), which ministers said was being abused by fraudulent claimants. Private companies such as Atos have been contracted to assess eligibility.
Margaret Hodge, the committee's chair, said: "The DWP has let down some of the most vulnerable people in our society, many of whom have had to wait more than six months for their claims to be decided.Margaret Hodge, the committee's chair, said: "The DWP has let down some of the most vulnerable people in our society, many of whom have had to wait more than six months for their claims to be decided.
"The department's failure to pilot the scheme meant that the most basic assumptions, such as how long assessments would take and how many would require face-to-face consultations, had not been fully tested and proved to be wrong.""The department's failure to pilot the scheme meant that the most basic assumptions, such as how long assessments would take and how many would require face-to-face consultations, had not been fully tested and proved to be wrong."
MPs examined paperwork containing bids for the contracts and found unfounded claims had been made by Atos that were untested by the government.MPs examined paperwork containing bids for the contracts and found unfounded claims had been made by Atos that were untested by the government.
"Atos stated in its tender document that it had 'contractual agreements' in place with a national network of 56 NHS hospitals, 25 private hospitals and over 650 physiotherapy practices to provide assessments. This turned out not to be true," Hodge said."Atos stated in its tender document that it had 'contractual agreements' in place with a national network of 56 NHS hospitals, 25 private hospitals and over 650 physiotherapy practices to provide assessments. This turned out not to be true," Hodge said.
The Labour MP added: "We would have expected the department to have exercised particular caution in letting this contact, given the poor performance of Atos on work capability assessments."The Labour MP added: "We would have expected the department to have exercised particular caution in letting this contact, given the poor performance of Atos on work capability assessments."
The report also found assumptions about the process were not fully tested and proved incorrect, resulting in significant delays to benefit decisions and a backlog of claims.The report also found assumptions about the process were not fully tested and proved incorrect, resulting in significant delays to benefit decisions and a backlog of claims.
The DWP expected 75% of assessments would be face-to-face consultations rather than on paper, and they would take 75 minutes on average to conduct. In practice, more than 97% of assessments have been face-to-face, taking about 120 minutes.The DWP expected 75% of assessments would be face-to-face consultations rather than on paper, and they would take 75 minutes on average to conduct. In practice, more than 97% of assessments have been face-to-face, taking about 120 minutes.
There have been unacceptable delays in making benefit decisions, placing unwarranted pressure on claimants, disability organisations, and other services, the report said.There have been unacceptable delays in making benefit decisions, placing unwarranted pressure on claimants, disability organisations, and other services, the report said.
By October 2013, the DWP had only made 16% of the decisions it had expected to have made by that time.By October 2013, the DWP had only made 16% of the decisions it had expected to have made by that time.
David Cameron's spokesman denied the government had let down vulnerable people. "I think what you are seeing is the transition from a scheme of self-certification to one where I think the right and proper checks are being made," he said.David Cameron's spokesman denied the government had let down vulnerable people. "I think what you are seeing is the transition from a scheme of self-certification to one where I think the right and proper checks are being made," he said.
"But one of the consequences of that approach is that the government is better able to ensure that the resources – and the resources available from the transition to DLA to PIP are the same – we ensure that they are targeted to those who most need it."But one of the consequences of that approach is that the government is better able to ensure that the resources – and the resources available from the transition to DLA to PIP are the same – we ensure that they are targeted to those who most need it.
"If there are individual and very difficult cases then the government will always look at those understandingly. I would nonetheless bring you back to the point that at the heart of this approach is one where it is about ensuring that those who are in the greatest need and those who are most vulnerable have the maximum resources devoted to them.""If there are individual and very difficult cases then the government will always look at those understandingly. I would nonetheless bring you back to the point that at the heart of this approach is one where it is about ensuring that those who are in the greatest need and those who are most vulnerable have the maximum resources devoted to them."
Atos Healthcare said: "The department made clear that they were not misinformed during the tender process, that at the point of go live they knew our capacity, our partners and the number of centres we would be using. We completely refute any allegation of misinformation during the procurement process for personal independence payment. Not only have we written to the committee to clarify our position but we invited the National Audit Office in to scrutinise our documentation."That we could not have binding contracts in place before we signed a contract with the DWP is simply common sense and in no way misleading. What we did have were detailed written proposals from the suppliers."
• This article was amended on 20 June 2014 to append a comment from Atos Healthcare.