The two private firms which carry out personal independence payment (PIP) assessments on behalf of the DWP are in line to make much more than the expected £512 million from their contracts, the DWP has revealed.
In spite of the fact that 65% of PIP appeals are currently successful and despite the growing unease even amongst MPs about the quality of PIP assessments, the two companies are making far more than expected from their contracts.
In total, Atos and Capita were set to be paid £512 million for their first five years’ work from 2013, which was to include assessing all working age disability living allowance claimants for PIP.
Yet they have already been paid £578 million and had their contracts, which should have run out this year, extended to 2019.
Earnings for the two companies from the contract now appear to be “spiralling out of control” according to shadow DWP minister Debbie Abrahams.
Payouts to the two companies amounted to:
£7m in 2013
£91m in 2014
£198m in 2015
£257m in 2016
You can read the full story in the Mirror.