Oral Answers to Questions

Lord Bellingham Excerpts

Monday 24th February 2014 Commons Chamber

[Anne Marie Morris (Newton Abbot) (Con)]

3. What timetable his Department is working to for the retendering of contracts to deliver work capability assessments; what progress has been made with such retendering; and if he will make a statement.

[Mr Henry Bellingham (North West Norfolk) (Con)]

4. When he next expects to meet representatives of Atos to discuss its work for his Department.

[The Minister of State, Department for Work and Pensions (Mike Penning)]

Although we have seen some improvements in Atos quality, we are still in ongoing commercial discussions. Unlike Atos, we respect the commercial confidentiality of those discussions. It is important to get the procurement right. The previous Administration did not share that view, which is why we are in this mess today.

[Mike Penning]

The issues to do with the work capability assessment and the unacceptable backlog that Atos has built up over the years are due to capacity and quality. The quality, which was very poor earlier on, has been improved. That means that there is now a huge backlog, which is why we are currently in negotiations with Atos.

[Mr Bellingham]

Given that Atos has now announced that it wants to withdraw from the contract that was negotiated with Labour, does the Minister agree that it would be an absolute disgrace if the hard-pressed taxpayer had to pay any form of compensation to the company?

[Mike Penning]

Since we came into power, we have been warning Atos of the need to improve its service. We are seeking agreements with it to ensure that that is done, some of which have not come to fruition. If we terminate the contract today, as the Opposition have suggested, the financial consequences would fall on the taxpayer and not on Atos, which would be absolutely wrong and something that I will not accept.