Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Benefit Assessors Capita in Financial ‘Problems’.

with 38 comments

Image result for Capita PIP


Some well-dodgy companies and ‘charities’ are set to run the Work and Health Programme,

Central England Shaw Trust January 2018
2 North East England Reed in Partnership January 2018
3 North West England Ingeus November 2017
4 Southern England Pluss January 2018
5 Home Counties Shaw Trust January 2018
6 Wales Remploy December 2017

This is how one DWP ‘contractor’ (PIP and ‘ DWP partnered with Capita Document & Information Services and Capita’s 10 enquiry lines on behalf of the Department for Work and Pensions (DWP)) is faring, despite siphoning off tonnes of public money.

Capita: more than £1bn wiped off value of UK government contractor

Grim state of outsourcing firm’s financial position emerges two weeks after collapse of Carillion.

More than £1bn was wiped off the stock market value of the government contractor Capita on Wednesday, sparking fears of job losses and forcing Downing Street to play down the threat of a collapse echoing the demise of rival Carillion.

Capita, whose major contracts range from collecting the BBC licence fee to electronic tagging of prisoners, saw its share price nearly halve in a day following a grim financial update that reignited concerns over the outsourcing industry and the stability of public services.

This is a major part of Capita’s Welfare ‘Business’.

Personal Independence Payment Assessments

Personal Independence Payment (PIP) is a non means tested benefit for people aged between 16 and 64 who have a long term health condition or impairment.

It replaced Disability Living Allowance (DLA) for people aged between 16 and 64. DLA recipients can use the DWP PIP Checker to see if and when they will be affected.

Capita carries out PIP assessments on behalf of the Department for Work and Pensions (DWP) in Wales, the West Midlands and the East Midlands (Independent Assessment Services, delivered by Atos covers the other parts of Great Britain). Assessments are focused on how an individual’s health conditions may impact on their daily life, rather than the health conditions themselves. You can read about the DWP’s entitlement conditions and assessment criteria in detail on the DWP website.

DWP accused of ‘rewarding failure’ over ‘extortionate’ benefit assessors payouts. 

April 2017

Labour accused the Department for Work and Pensions (DWP) of “rewarding failure” by Atos and Capita, which appear set to be paid more than £700 million for their five-year contracts.

This compares with an original estimate of £512 million for the contracts to carry out assessments for personal independence payments (PIP). The DWP said the assessment process for PIP is key to supporting claimants, and it has to balance effective support for the most vulnerable with getting the best value for the taxpayer.

Analysis by the Press Association shows Atos and Capita have already been paid £578 million in relation to PIP since it launched in 2013. This includes £257 million in 2016, the highest year so far, according to the department’s monthly spending data.

But the three original call-off contracts for this work totalled £512 million. This figure was supposed to cover a five-year period, according to the original contract documents.

The contracts are due to run out in December. With DWP having paid Atos and Capita an average of £19 million a month over the past two years, the companies are set to be paid in excess of £700 million by the time the contracts hit the five-year mark.

Shadow work and pensions secretary Debbie Abrahams said:

“It is beyond belief that this Tory Government is rewarding failure. “The PIP process is in disarray and these private companies are receiving huge payouts in a time of extreme austerity.

“It is clear that these costs are spiralling out of control.

“The Government needs to get an urgent grip on these extortionate payments to private companies, especially at a time when they are getting more and more assessments overturned in the courts.”

Watchdog orders DWP to publish secret reports on Atos and Capita PIP failings

22nd January 2018.

The information commissioner has ordered the Department for Work and Pensions (DWP) to release documents that are likely to expose the widespread failings of two of its disability benefit assessment contractors.

DWP has been attempting to prevent the documents being released since receiving a Freedom of Information Act request from campaigner John Slater in December 2016.

He said the documents – if and when they are eventually released – will reveal the truth about what DWP knows about Atos and Capita.

Last month, the two outsourcing companies, which are paid hundreds of millions of pounds to carry out personal independence payment (PIP) assessments, told members of the Commons work and pensions committee that they had never met contractual quality standards on the reports their staff write for DWP.

The documents Slater has been seeking could provide further evidence of such failings, and fuel campaigners’ fears that Atos and Capita have been told by DWP to find a certain proportion of claimants ineligible for PIP.

Under the terms of their contracts to assess claimants across England, Wales and Scotland for their eligibility for PIP, Atos and Capita must provide monthly reports to DWP that cover “all aspects of quality, including performance and complaints”.

The reports include detailed “management information”, including the number of complaints made against assessors, what proportion of assessments led to claimants meeting the PIP criteria, and the average length of time taken for face-to-face assessments.

Slater, who works in programme and project management when he is not campaigning on issues around freedom of information, had asked DWP to provide copies of these reports for every month of 2016.

He told Disability News Service that the reports would provide “raw data” on the companies’ performance, before DWP “has had a chance to massage it”.

He said: “I suspect what they will show is not only that the contractors are struggling but also how bad DWP is at managing contracts.”


News provided by John Pring at www.disabilitynewsservice.c

Latest news:

Capita PLC (LON:CPI) could be an “interesting recovery story” but it is too early to tell whether the new chief executive’s turnaround plan will bear fruit, according to analysts at Jefferies.

The outsourcing firm, which holds several contracts with the government, on Wednesday issued a profit warning and announced plans for a £700mln rights issue, to scrap its dividend and sell off non-core divisions.

The news sparked worries that it could face the same fate as collapsed contractor Carillion PLC (LON:CLLN).

Jonathan Lewis, who started as Capita’s chief executive two months ago, admitted that the company was “too complex” and “too widely spread across multiple markets and services”, making it challenging to maintain a competitive advantage in every business.

“Capita could be an interesting recovery story but it is too opaque to model with conviction, management guidance has been unreliable, and perpetual UK political turmoil continues to weigh on the revenue outlook,” said Jefferies.

The broker cut its rating on the stock to ‘hold’ from ‘buy’ and slashed its target price to 200p from 750p.

Capita now expects 2018 underlying pre-tax profits to be lower at around £270mln to £300mln, well below consensus forecasts of £380mln, due to contract delays, higher attrition, weak new sales and higher costs.

Revenue is expected to be flat compared to the previous year, which is ahead of consensus forecasts for a 204% decline.

“The new CEO may have kitchen-sinked expectations and front-end loaded investment costs but it’s difficult to prove at this juncture,” Jefferies said.

The view of RBC Capital Markets is that Lewis is “doing all the right things” but weaker trading and the “more precarious” balance sheet mean he has had to raise capital before completing a full strategic review.


Shares in Capita fell 3.2% to 176.30p in morning trading.

It’s a pitiful state of affairs when our public services are dependent on “morning trading” in shares.

Written by Andrew Coates

February 1, 2018 at 11:45 am

38 Responses

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  1. Contingency plans being made for Barnet’s contracts with Capita

    The London borough has contracts with Capita worth almost half a billion pounds


    Capita has run into immence criticism of its activities at this Lonndon borough of its decision to remove disabled peoples bus passes without warning and the council having to compensate those involved.




    February 1, 2018 at 12:17 pm

  2. We’re doomed! Crapitas friends at Serco have responsibility for doing GP salaries and also the abysmal NHS cervical scraping programme. Already the medics are predicting chaos and personally I don’t want Serco having any detail of mine…


    February 1, 2018 at 2:51 pm

    • A company called Verify, will be added to this list soon: these are the people supposed to vet and scrutinise new claims for Universal Credit on the “full digital service” and making a pig’s ear of it.


      February 3, 2018 at 11:33 am

  3. Government defends handling of outsourcers as it reveals talks with Capita bosses.

    ” Rachel Reeves, the Labour MP who is chair of the business select committee and is overseeing an investigation into Carillion, accused the Government of being “muddled and complacent”.

    “Can the minister honestly say that Capita could not come to the same fate that Carillion did just two weeks ago, that people working for Capita have nothing to fear, and that those saving prudently for a pension with Capita can rely on that pension paying out fully on retirement?” she said.

    Mr Dowden said that the Government’s role was to ensure a continuation in public services. “I am confident that they will continue to be delivered,” he said.

    Despite repeated questions from MPs, he declined to comment on the detail of any contingency plans that the Government had put in place if Capita collapses.

    Capita’s share price has plunged almost 55pc since the market closed on Tuesday night, trading a further 14pc down on Thursday at 156.8p.

    Shares in fellow outsourcer Interserve were also down 15.05pc to 90.73 amid wider concern about the health of the market.”


    Run for the Hills!

    Andrew Coates

    February 1, 2018 at 4:01 pm

  4. well here is the hwp provider for the sw and Prospects Training is the one for my area and i must have been sent to that dump more than ten times in the past and was a complete and total waste of time so rewarding company’s with failing time and time again so they can profit from there racket.

    The new programme is called ‘Opportunities Unlimited’ and it will help over 35,000 people across Southern England to find long-term work over the next seven years. At least 85% of people on the programme will have a health condition or disability.




    February 1, 2018 at 4:42 pm

    • And here it is: Work and Health Programme Provider Guidance published today.

      I haven’t had a chance to look at it properly, but I will.


      jj joop

      February 1, 2018 at 5:02 pm

      • 10. You must meet ESF specific requirements set by the European
        Commission and failure to comply can result in a high financial risk for
        both DWP and you, as funds used inappropriately or for ineligible
        purposes and/or where the ESF requirements have not been met may be
        recoverable from you along with additional sums as further described
        elsewhere in the Contract. The ESF requirements include but are not
        limited to the following:

        11. The requirements above apply to all Participants and services supplied
        under the Contract. If sub-contractors are used to deliver any part of the
        services under the contract it is your responsibility to ensure ESF
        requirements are met in respect of all services delivered through such
        sub-contractors. You therefore are ultimately accountable for the
        compliance of the contract with ESF requirements. Failure to comply with
        any of the ESF requirements may result in the reclaim of funding and
        claims against you for recovery of any payments received under the
        Contract and losses arising from the failure to comply with ESF

        15. You must ensure Participants are not worse off by virtue of attending the

        16. You must at your expense pay each Participants costs for travel,
        childcare, replacement care and additional support costs whilst the
        Participant is on the WHP.

        Start: The point at which the Participant attends their first face to face
        meeting with you. The date of the initial face to face meeting should be
        recorded in PRaP as the start date; this may be a retrospective date if you
        are entering the start date after the face to face meeting was conducted.
        You must provide evidence of this. Examples of acceptable evidence will
        include (in England) an appropriately completed ESF1420 Initial (or other
        similar ESF) form, or evidence of initial action planning activity

        Please note – It is essential that you retain robust evidence of the twoway
        conversation/action planning. This evidence will be subject to
        validation, audit and the evidence must be retained in line with ESF
        document retention requirements

        Work and Health Programme Provider Guidance
        01/2018 4 V3.1
        Should you fail to meet the 10 day Customer Service Standard, you must
        still engage with the Participant, however please note that you only have
        60 days in which to register a start, as this line will be automatically
        closed in PRaP.

        7. Information sent as part of the referral is sensitive personal data within the
        meaning of the Data Protection Act and handling, processing and
        transmission rules apply. The information sent as an anticipated minimum
        will include:
        • full name including title
        • National Insurance number (NINO)
        • full address including post code
        • telephone number inc area code
        • other telephone number (mobile)
        • qualifications
        • Driving Licence
        • aims (free text field)
        • job preferences
        • employment history
        • preferred hours
        • Participant’s payment group
        • if the Participant is voluntary or mandatory
        • Incident Marker – notification where a Participant has had an
        incident recorded while working with Jobcentre Plus. The Jobcentre
        will issue you with a notification of control measures form by post to
        make you aware of any measures following an incident. Further
        information on incidents can be requested by contacting Jobcentre
        • Disability Status – notification that the Participant has informed
        Jobcentre Plus that they are disabled. Disabled may require special
        arrangements when you meet with them
        Work and Health Programme Provider Guidance
        01/2018 7 V3.1
        • childcare needs/arrangements, for example lone parent, preferred
        working pattern
        • Participant’s signing cycle
        • Participant’s claim pattern
        • Voluntary Early Entry Category
        • JSA signing day
        • Jobcentre Plus agreed employment restrictions on availability
        • Welsh language written or spoken
        • referral ID
        • provision ID
        • date of referral
        • Participants who require additional support – this will be notified by
        the inclusion of the wording “May require reasonable adjustment or
        additional support” on their action plan
        • disadvantaged marker set Y (yes) or N (no). Where information
        states disadvantaged marker set ‘Y’ you will need to ask the
        Participant to disclose any disadvantages they have

        so you have to go to the face to face that is clear but what is also clear is they will need ur sig on the esf form to get there money it does not say anything if you refuse to sign now aint that funny pmsl.

        it is the wp all over again from the looks of it tho this time aimed at the disabled.

        so if you go to the face to face make sure you have proof of this taking place with bus tickets with time and date as i bet they will do a DNA if you refuse to sign the esf contract.

        now if you do go and they try a dna and did attend with proof the jcp wont be able to refer you again as the provider is telling lies on the system.

        they tried it with me many times with a dna but i always had proof i did attend 😉


        February 1, 2018 at 5:29 pm

      • Thanks for that.

        Will also have a proper look.

        Andrew Coates

        February 1, 2018 at 5:39 pm

      • Well they won’t be getting my signature, beauty!

        jj joop

        February 1, 2018 at 5:43 pm

      • CDIS now works in tandem with DWP to deliver services which include:

        Sorting, scanning, indexing and storing documents received daily from the 44 DWP sites. This process works inline with DWP’s indexing system.
        Scan-On-Demand as well as scanning and indexing more than 60,000 archive files (over 9 million images).
        Providing secure storage for over 800k boxes of archived information.
        Scanned, optical character recognition (OCR), and making fully text searchable materials including archived reports and booklets sent from DWP’s libraries.
        Managed physical storage space available at both the Darlington and Heywood sites ready for DWP’s needs.
        Authorised stakeholders given secure access to digitised documentation in a fast, efficient manner. All this whilst maintaining agreed service lines along receipts, retrievals, returns and destruction volumes.

        This partnership delivered a range of benefits to DWP including:

        Unlocking hidden information
        CDIS created a full Document inventory catalogue from scratch, this allowed users to search, group and export information within their 96 million records.
        Local access to information
        All the benefits and none of the risks of having instant access to business information. Improved response rates DWP’s staff and stakeholders alike benefit from having faster access to customer files in order to provide a better service to its patrons.
        Rationalisation of real estate
        As documents are processed DWP benefits from a documentation rationalisation across its 44 sites, this allowed for significant real estate reduction, increased staff efficiencies and allowed DWP’s staff to focus on improving front line benefit delivery.
        CDIS have a dedicated link into DWP’s systems to allow CDIS to proactively manage DWP’s documents.


        February 1, 2018 at 5:52 pm

    • In my area, the WHP is delivered by the Shaw Trust in partnership with local partner in Cambridgeshire and Peterborough, the Papworth Trust.

      Job search portals or websites used by the Shaw Trust and Papworth Trust


      jj joop

      February 1, 2018 at 5:28 pm

      • 8. Third party evidence will always be the preferred format, self-declaration should
        only be used where third party evidence is unavailable. Eligibility and
        Programme evidence should be obtained prior to the completion of the ESF 14-
        20 Initial form (See ESF MI section). On exception should evidence to support
        Work and Health Provision be unavailable or the Participant refuses to provide
        evidence, this will mean you cannot confirm eligibility and must notify DWP by
        completing an ESF1420 annotated with the words “Participant Refusal” or
        “Participant not signed”.
        9. When emailing DWP the ESF 14-20 Initial form stating that you are unable to
        provide evidence of eligibility or the customer has refused to provide evidence,
        you must ensure the following wording is used in the email title “Participant
        10.When notifying DWP that a Participant will not sign the ESF1420 form you must
        ensure the following wording is used in the email title “Participant not signed”

        14. The fully completed ESF 14-20 Initial form should be signed by the Participant: in
        doing this they declare that they understand Provision is being ESF funded and
        they have received the ESF2020, and that they are aware their information will
        be stored and used for ESF purposes. In the event an individual cannot or
        refuses to sign the ESF 14-20 form you must still submit the ESF14-20 as
        directed in paragraphs 9 and 10 of this Chapter.

        and there it is 😉


        February 1, 2018 at 5:49 pm

      • Sweet.

        jj joop

        February 1, 2018 at 7:33 pm

      • Anyone who has been out of work for two or more years

        It shows too that they are attempting to interfere in peoples lives.

        How does this programme differ from others?

        The Work and health Programme recognises that everyone is different, this means that our Support Managers understand that each person has their own set of challenges, their own individual reason for being out of work and that each person’s path will be different.
        What does the programme help people with?

        The programme looks to enhance every aspect of the service users life, not just the employment outcomes. These factors include:

        Friends, family and personal responsibilities
        Lifestyle Housing and money
        Finding and preparing for work
        Physical health, mental health and mood management
        Skills and experience Volunteering



        February 2, 2018 at 10:37 am

  5. Capita In the meantime

    A cost-cutting programme is expected to result in job losses among Capita’s 67,000 employees, 50,000 of whom are in the UK, while parts of the business will be sold to raise cash

    Meantime those employed soar!.


    February 1, 2018 at 5:33 pm

  6. public services going further down, is someone going to change it before there are no public services.


    February 1, 2018 at 6:14 pm

    • The consequences of Carillion.going down and the possibility of Capita going down as well as the possibility of many more, not many people think about that do they, especially when they may need those services.


      February 1, 2018 at 8:33 pm

  7. Capita don’t just provide a few services, they seem practically to run entire councils

    Capita’s financial woes raise serious questions about the vulnerability of local authorities – like Barnet and Northamptonshire – who have been suckered into signing decades long outsourcing contracts by inflated promises of ‘private sector efficiencies’

    Bradford Council, where former Communities Secretary Eric Pickles had just become leader, Capita was lined up to advise on the outsourcing of catering and school meals by what’s known as a “leveraged management buyout”.

    Eric Pickles 1989 “Bradford revolution” in outsourcing would soon make him a darling of the Margaret Thatcher Government and a safe seat in Westminster soon followed.

    In pursuing a privatisation agenda against overwhelming public opposition, Pickles outsourced council services, amidst swingeing cuts to council staff and services


    Making the taxpayer pay.This opens up all possibilities at local and national level timed to coincide with the Universal Credit rollout.


    February 1, 2018 at 10:39 pm

  8. compensation soon to be assigned to history.

    Victims of NHS blunders should receive smaller compensation payouts or the “staggering” costs of Britain’s negligence bills will bankrupt the health service, the Justice Secretary has been told.

    Health service leaders have written to the Government, calling for cuts to payments for patients who suffer devastating injuries as a result of medical errors.



    February 2, 2018 at 9:37 am

  9. A QUARTER of Basildon children now live in poverty. Foodbank dependency is up more than 130 per cent.

    Foodbank dependency is increasing and some politicians have told the YA that almost all of the contacts they receive from local residents are poverty-related.



    February 2, 2018 at 10:45 am

  10. ‘Tories are punishing the poor’ – MP hits out over Bridgeton job centre closure

    Ged Killen slammed the government as jobseekers who used the hub will be “forced to travel for longer and face longer queues.”



    February 2, 2018 at 10:52 am

  11. Under-fire Samaritans faces anger over advisory board crammed with Tories

    A mental health charity that refused to criticise the government for ignoring links between claimants of out-of-work disability benefits and suicide attempts is facing criticism after it emerged that more than half of its advisory board are influential Conservatives.



    February 2, 2018 at 10:58 am

  12. Recommended:

    Andrew Coates

    February 2, 2018 at 12:13 pm

  13. According to jobcentre logic these guys should be as happy as Larry because they have a 😀 JOB 😀 , but as the guy towards the end says; “The only consolation I have is that everyone dies. Even the rich die”.


    A look behind the doors of a textile factory in India, observing the life of the workers and the oppressive environment they seldom escape from


    February 2, 2018 at 12:54 pm

    • whoknew

      February 2, 2018 at 3:06 pm

    • We sat down to watch this a couple of nights ago. When the programme started we noticed the subtitles “Sounds of machines whirring”, but there was no sound. This was BBC 4 HD (So-called High Definition). When we switched to the SD channel there was sound. After much fiddling we eventually found the audio on the “audio description”/”narrative” track. Admittedly, the workers were speaking in subtitled Gujarati… but still, very unprofessional from the BBC. We don’t expect to take our TV apart we sit down to watch a programme. And to rub it in, there was no apology at the end. Did the ‘network director’ not even notice or does BBC 4 not have the ‘luxury’ of ‘live’ announcers? In any event, a shambles.

      The Couch Spuds

      February 2, 2018 at 5:25 pm

    • Or maybe it was BBC cut-backs?

      The Couch Spuds

      February 2, 2018 at 5:26 pm

    • Because it was dark ,and the colour was a bit drained in parts we just assumed it was a Charlie Chaplin-style silent movie. It didn’t occur to us to adjust our set.

      Bernie and Millicent

      February 2, 2018 at 5:32 pm

  14. Brexit is drowning out issues that at another time would be causing ructions. The government is rolling out Universal Credit causing unheard of difficulties, poverty and homelessness are rising, local authorities are at breaking point because of cuts made by central government, people are dying on trolleys in hospitals because the NHS is collapsing – shit! – the list is endless. And yet the roar of Brexit is so deafening that people can’t see how awful things are at home.

    No government this bad would still be scoring 40%+ in the polls any other time in history.


    February 3, 2018 at 11:31 am

  15. Cardigan councillor leads calls for changes to universal credit

    A MOTION expressing concern over the introduction of universal credit in Ceredigion in September 2018 has been passed by the county council.

    The motion, proposed by the council’s poverty champion Cllr Catrin Miles, says the Westminster Government’s universal credit scheme is causing a social emergency and has caused serious financial difficulties for thousands of claimants.



    February 3, 2018 at 2:45 pm

  16. MPs should hang their heads in shame over homeless

    The delay in assessments and payments has driven people into rent and council tax arrears, food banks might put some food on the table but it doesn’t put heat under the pan or light in the kitchen.



    February 3, 2018 at 2:47 pm

  17. Foodbank appeals for more donations due to ‘significant demand’

    “We have significant demand right now and there were well over 100 people there last week.



    February 3, 2018 at 2:49 pm

  18. Andrew Coates

    February 3, 2018 at 4:23 pm

    • Is there any end to the snags associated with Universal Credit?

      “The increasingly common theme among a growing number of identity experts is that Verify needs a major overhaul. They think it is blocking the creation of a much-needed UK digital identity ecosystem – and GDS [Government Digital Services – which sits in the Cabinet Office] is seen by many as the logjam in the middle.”

      But then, that’s what happens when you put a logjam in charge! Can you imagine, a logjam in charge of UC chaos!!!



      February 3, 2018 at 6:21 pm

    • Using verify for UC, they knew not everyone has the required ID, but they still went ahead with it.
      Assessments for the disabled, they knew many would commit suicide, but they went ahead with it.
      Sanctions, they knew this would lead to hunger, malnutrition, without other essentials and evictions.but they went ahead with it.
      The long wait for UC benefits, they knew this would lead to many evictions, but they went ahead with it.

      Yes, there does need to be a different kind of welfare reform.as well as many other much need reforms.


      February 3, 2018 at 6:59 pm

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