Category Archives: Capita
Work capability assessments, introduced under the last Labour government, were first carried out by Atos, which had a £100 million a year contract in 2012 – and later earned much more. The firm made a £42million profit in 2010 and paid its chief executive Keith Wilman £800,000, a 22% pay rise on the previous year. Since then other providers, including Capita and Maximus, have also been making these assessments. For several years there has been evidence from a wide range of sources that they are not being carried out efficiently. A few examples follow:
Doctors backed a motion at the annual BMA conference in 2012 stating that Atos’s assessments were “inadequate” and “have little regard to the nature or complexity of the needs of long-term sick and disabled persons.
In their evidence to the Fifth Independent Review of the Work Capability Assessment (2014), the BMA repeated its 2012 call for government to end it “with immediate effect and replace it with a rigorous and safe system that does not cause avoidable harm to the weakest and most vulnerable in our society”.
2015: An academic paper, published in the BMJ’s Journal of Epidemiology and Community Health in which examined 149 English council areas, found that nearly 600 suicides in England may be associated with the government’s “fit-for-work” tests.
Oxford and Liverpool researchers looked at three years’ data and also found the Work Capability Assessments could be linked to a rise in mental health problems. The BBC reported in 2015 that the study found the areas with most WCAs showed the sharpest increases.
2016: The UN Committee on the Rights of Persons with Disabilities found that UK welfare reforms have led to “grave and systematic violations” of disabled people’s rights.
Changes to benefits “disproportionately affected” disabled people, the UN Committee on the Rights of Persons with Disabilities (CRPD) found. The 2016 investigation was launched after receiving evidence from disability organisations about an “alleged adverse impact” of government reforms on disabled people. UN committee members visited London, Manchester, Birmingham, Cardiff, Edinburgh and Belfast in October 2015 to identify any gaps in human rights protection for disabled people. As part of its inquiry, the CRPD also looked at a range of recent welfare reforms and legislation including the Welfare Reform Act 2012, Care Act 2014, and Welfare Reform and Work Act 2016.
The BBC reported the UN inquiry’s conclusion that changes made to housing benefits and criteria for parts of the Personal Independence Payment, combined with a narrowing of social care criteria and the closure of the Independent Living Fund, “hindered disabled people’s right to live independently and be included in the community”.
Work and Pensions Secretary Damian Green rejected the UN report’s findings, but it has now been announced that after a high court ruling on 2017 regulations, introducing criteria which discriminated against those with impaired mental health, decisions on personal independence payments will be reviewed.
2017: Directors and other officers of the Department of Work and Pensions receive new year’s honours for services to ‘welfare reform’, as a reader draws attention to an undated article in the Dorset Eye, by Douglas James, listing 82 people who have died or committed suicide soon after dealings with agencies such as ATOS and the government’s Department of Work and Pensions. A search was made for news of the first five on the Dorset Eye list and links to fuller accounts were added. Most of the people were aged 30-40.
2018: Private Eye 1462 reported in January that despite long-drawn-out resistance from the DWP, Atos and Capita, the Information Commissioner’s Office has now ruled that the DWP must reveal monthly reports These include details of complaints against assessors, the length of time taken by t-assessments and how many fail – i.e. are overturned on appeal.
In December the Commons Work & Pensions Select Committee report revealed that:
- it had heard disturbing evidence,
- accounts of medical assessments range from frustrating to gruelling,
- there were remarkably high, if slowly improving, levels of unacceptable reports,
- not one doctor had been involved in the assessments and
- Capita’s own auditing found that at points in the contract almost 60% of its reports were “unacceptable”.
MP Tom Brake speaks out:
“Many constituents are in despair when they contact me after an inaccurate report. Reports of face-to-face assessments need to be unbiased, fair and above all accurate. It was important to flag up these discrepancies directly with ATOS. The Government need to ensure that assessments are recorded to prevent alarming inaccuracies. I will continue to put pressure on the Government to reform the current system. At the moment too many people have lost faith in the system.”
Last resort: after many disastrous years – like Windscale nuclear reactor station – in June Atos Healthcare announced changes to its name – but not its practice.
Seven years ago, the Stirrer’s correspondent (The Spook) predicted that one day the powers that be will realise that services should be designed and managed by the ‘undoubted experts’ that exist within the council.
S/he explained that they would be more practical and less expensive than those designed by “by cavalier consultants and back room HR boffins who have no conception of delivering a service and are only concerned that “procedures” are followed and “statistics” are recorded, irrespective of how impractical and resource wasting this might be.
Yesterday the Financial Times predicted that Learndirect, a company owned by the private equity arm of Lloyds Bank, is at risk of collapse, following a report by Ofsted. This prompted a data search which revealed 2013-4 as vintage years for complaints about the performance and cost of outsourcing companies.
Last year a survey of 36 strategic public-private partnerships signed between 2000 and 2007 found that 13 of the contracts – ranging from 7 to 15 years and covering IT, back-office functions, property management and highways – have gone back in-house at the end of contract or as a result of early terminations. In more than a third of cases, councils found that delivering services in-house could save more than outsourcing to commercial companies in long-term, multi-service partnerships. A return to designing, staffing and over-seeing services in-house can improve performance, reduce costs and provide stable employment for local people at all levels, with money circulating in the area, instead of going to distant shareholders.
The New Statesman noted that many companies featured on their list of nine spectacular’ council outsourcing failures were said to be looking “excitedly” at the NHS – hoping for “heaps of public money, ditching service the second the contract is framed and delivering huge returns to their shareholders”. Its 2014 article opened:
“One of the many concepts that free marketeers refuse to abandon in the face of all evidence is the idea that the private sector is better at providing public services than the public sector. Private companies have been cashing in on this fable for years at council and government level. As we file this report, another glorious outsourcing triumph is breaking: the Ministry of Justice has asked police to investigate alleged fraudulent behaviour by Serco staff in its Prisoner Escort and Custodial Services contract”. An online search will reveal that this is one of many problems reported in different countries.
Punitive contract ‘get out’ clauses – real or imagined
The article also listed the amount councils have had to spend to get out of private sector contracts and/or to deal with contract disputes and cost overruns. Note Javelin Park – the Gloucester incinerator contract revelation.
Despite these concerns, four years ago Swindon council brought basic ‘commercial’ services such as waste collection, recycling, highways maintenance and grass cutting, back in-house in order to save an estimated £1.8m. Last year, because of performance problems, financial pressures and NHS policy shifts, Swindon also decided not to renew contract with social work provider SEQOL.
Birmingham City Council recently ended the Service Birmingham Joint Venture with Capita which provided the Council’s information technology, ran the council tax and business rates administration service. The process continues with its move to bring waste and recycling collection in-house.
With reference to Serco, G4S and others – Simon Chesterton goes deeper, beyond issues of cost and efficiency:
He asks (left) whether there should be any limits on government capacity to outsource traditionally “public” functions:
“Can and should a government put out to private tender the fulfilment of military, intelligence, and prison services?
Can and should it transfer control of utilities essential to life, such as the supply of water?”
A reader from Bournville draws attention to an article by Jules Birch in Inside Housing, a weekly magazine for housing professionals. He focusses on a recent TV Panorama programme about the benefit cap that now leaves thousands of people with 50p a week towards their rent.
He noticed that roughly 95% of tweets with the hashtag #benefitcap (scroll down to April 7) were hostile to the people featured in the programme rather than the policy. The majority of people commenting on Twitter were seeing the undeserving individual instead: the stroppy single mother with a mobile phone and the couple with many children. He notes that exactly the same thing happened with Benefits Street, How to Get a Council House and a Dispatches documentary on the cap last month.
Part of the problem, he believes, lay with the way Panorama framed the issue. As Joe Halewood was quick to point out, the programme and its advance publicity seemed to assume that most people capped are unemployed and on Jobseeker’s Allowance, when in fact just 13% are.
The fact that the vast majority of people capped are either unable to work or not required to work was only raised tentatively halfway through the programme. Most of those capped are lone parents with young children who are not required to look for work, or people on Employment and Support Allowance who do not qualify for an exemption but are still not fit for work.
David Pipe explained the effects in a piece following the Dispatches documentary last month. 7,500 households across 370 local authority areas have lost their housing benefit and are now receiving just 50p a week to pay their rent. The cap leaves a nominal amount for housing benefit or Universal Credit once someone’s benefits total more than £20,000 (£23,000 in London). In effect it is imposed on top of the rest of the benefits system.
The latest budget highlighted cuts for the poorest 18-21-year-olds, who will no longer be entitled to help with their rent through Universal Credit from April 1.
For many, Discretionary Housing Payments (DHPs) are the only thing keeping them in their home and the effect over time will be rising rent arrears and evictions and allocations policies that make it less likely that people on benefits will get a tenancy in the first place. So where and how can the poorest people live? Even people in caravans are being capped, and what will the knock-on costs be in terms of homelessness and the impact on the children?
Meanwhile in Broken Britain, the May government continues the policies of its predecessors and makes decisions which seriously afflict the poorest and greatly benefit the richest: the arms traders, Big Pharma, the privatised utilities, large developers, car manufacturers, private health companies and expensive, inefficient outsourcers – Serco, G4s and Capita.
Speaking in Manchester on Wednesday, the prime minister accused the Labour leader of holding a “Britain-hating ideology.” He suggested that Corbyn thought the death of Osama bin Laden a “tragedy,” rather than repeating his precise idea, which was that bin Laden’s extra-judicial execution without trial was a tragedy. A petition demanding that Cameron retract is being circulated.
David Cameron’s attack on Jeremy Corbyn is likely to be ineffective – and indeed to strengthen his support base.
Every time these dubious characters make some charge against the Labour leader, thousands more are recruited.
Because, at long last, the LabCon regime has been rumbled.
The general public has woken up to the corrupt nature of their elected parliament, with the exposure of relatively minor peccadilloes – claiming unmerited expenses, seeking cash for questions – to serious but legal corruption. This sees senior MPs powerfully influenced by large corporations which offer them non-executive directorships and/or retirement positions and then make decisions which increase their benefactors’ profits, rather than the common good.
Ordinary people try to make ends meet as these spivs use taxpayers’ money to:
- promote the global casino with commodities trading,
- subsidise trade in weapons,
- sell off the country’s assets and utilities,
- privatise health and local government and
- make the poorest pay for the banker-politician-made crash.
As the drip feed of slander and innuendo proceeds apace, the Labour Party membership continues to increase; many thousands flock to hear Jeremy Corbyn and make their presence enthusiastically felt on social media, radio, TV or in public – wherever there is an audience.