Capita gets two-year extension to PIP contract despite ongoing criticism
Capita has secured a two-year extension to its contract to deliver Personal Independence Payment (PIP) assessments for the Department for Work and Pensions (DWP), worth approximately £112m, it announced on Wednesday.
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The FTSE 250 outsourcing giant said that, in addition to the DWP contract, it also won a two-year extension to its PIP assessment contract with the Department for Communities (DfC) in Northern Ireland, worth approximately £33m.
Capita explained that PIP helped people with a long-term condition or disability lead independent lives, by providing additional financial support.
Capita was contracted by the DWP and the DfC to deliver functional assessments and produce reports which were reviewed by government case managers alongside other evidence.
“These contract extensions are testament to the commitment of our healthcare team, our consistently strong operational performance, and the strength of our longstanding relationship with government,” said Capita chief executive officer Jon Lewis.
The contract extension came despite consistent criticism of the handling of the PIP assessment scheme from campaigners and politicians, with recent data suggesting more than a third of assessments were “significantly” flawed.
PIP assessments are completed by Capita or fellow outsourcing firm Atos, depending on where the person being assessed lives.
Figures secured by campaigner John Slater under the Freedom of Information Act showed that, of 6,000 PIP reports completed by the two companies in 2018, 3.92% were categorised as ‘unacceptable’ as they were of such poor quality.
Another 17% of assessments were of such poor quality that the DWP said there was “learning required” by the healthcare professional who wrote it, and 16% more needed amendment due to more serious flaws, though they were deemed to be acceptable.
Capita noted that under IFRS 15, each individual PIP assessment was treated as a separate contract.
As such, there was no addition to its order book as a result of the extensions.