Will a DWP £1 billion digital “transformation plan” for health assessments of disabled benefit claimants be a new disaster?

The National Audit Office last week gave its verdict on plans by the Department for Work and Pensions to digitalise and transform all the health assessments of disabled people claiming benefit and Personal Independence Payments (PIP) by 2029 and raised serious concerns whether it would work..

This is not a minor matter for the disabled. Some 3.9 million working age people claim these benefits and those claiming both PIP and the Employment and Support Allowance have to pass two health assessments. By 2025-6 the number of claimants is estimated to rise to 5.8 million. Every year private contractors assess nearly two million people. There also has been a rise in people claiming ESA as a result of the pension age for women going up from 60 to 66 and for men from 65 to 66.

As usual this report appears to have had little coverage in the national media -despite the millions of people that will be affected.

High risk of delay, cost overruns without achieving benefits

Gareth Davies, the head of the NAO, said:

“While the Programme is ambitious and has the potential to make savings and improve the experience of those being assessed, the scale and complexity of the transformation leaves it at high risk of delay, cost overruns, and of not achieving the intended benefits.”

He called for the department to revise its business plan for the £1 billion scheme and for more transparency so that perhaps even MPs can understand its implications.

At present disabled people have to provide multiple documents and fill in long forms to claim and the system is unpopular. The new system will digitalise the process, cut out duplication but will still depend on private contractors assessing whether people are unfit enough to claim.

Therese Coffey, former DWP secretary of State

Appeals over claiming PIP are unnecessarily high with decisions by the private firms being overturned and there have been cases where people turned down for disabled benefits have died and the DWP under Therese Coffey covered up reports about this. See this report in the Disability News Service.

The transformation is going to take place alongside new five year contracts for three private companies, Capita. US company Maximus, and Australian firm Ingeus worth over £1.6 billion with an IT contract to Atos to provide the computer back up. Nearly all the companies (except Ingeus) have been linked to claimants deaths as an article in Disability News Service reveals.

Limited testing of system using state appointed medical advisers

At the same time there is going to be a limited state provided service in London and Birmingham where the DWP will employ medical assessors directly. The aim according to the NAO report is to ” test and learn ” the new system and pass on the information to the contractors.

The NAO is sceptical whether this twin approach will work in time for the national 2029 launch as the contracts awarded to these firms will not be flexible enough to make changes without no doubt further expensive negotiations.

One of the main aims of the scheme is to save public money through digitalisation and the DWP estimates a £2.6 billion saving up to 2035. One wonders though whether all the disabled people will be able to use computers to apply on line ( all PIP applications will be on line) eventually. Can they download apps etc and do they all possess smart phones?

Once again I am going to be sceptical about this – particularly after the NAO’s report on Making Tax Digital which it revealed has been subject to long delays and huge increases in costs. Given other areas I have covered in the DWP I have little confidence they can get things right.

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Pass the sick bag not the pop corn: US verdict on DWP’s privatised sick note service

Last week I revealed how Lord Freud, the welfare reform minister, had awarded a new contract to Health Management Ltd, subsidiary of US multinational company, Maximusto take over from doctors  to decide when you should return to work if you claim more than four weeks sick pay.

The programme is to be rolled out from November to next May aims to save up to £165 million a year by getting people back to work faster as part of Lord Freud’s welfare reforms. Effectively it will mean you will get a telephone consultation  from a call centre and be emailed when you should return to work. If don’t co-operate you will lose your benefit.

The company’s press release reveals the 63 month contract will be rolled out first in Wales, the Midlands and the North before it hits the more affluent South.

Richard A  Montoni, the multi billionaire chief executive explained:“The Health and Work Service program is a natural opportunity to demonstrate Health Management’s expertise as the UK’s largest occupational health care provider and an important step in our long-term goal of expanding in this important market.

“While we expect an initial start-up loss due to the nature of the contract, the overall program economics are strong and once ramped, the contract is in-line with our targeted range of portfolio performance.”

Now through using a website called Glassdoor I have discovered what employees and ex-employees in the US think of Maximus. If you feared it was going to be a cheapskate alternative to your GP – aimed at using low paid, untrained, overworked people in call centres while maximising its profits for overpaid bosses you are right..The customer or claimant seems the least of their concerns.

These are a selection of their comments:

“When starting the business I asked for instructions on how to complete basic daily administrative tasks essential for audit. I was told by my colleagues and my manager not to bother as “we never do it”. Six months later, after figuring out, off my own back how to do it, Head Office comes down like a tonne of bricks on the office stating they have not been done and have failed audit. On top of this I worked with racist, homophobic and disgruntled colleagues who were obnoxious, lazy and didn’t give a damn. My line manager refused to verify my work as he was too lazy

“Management has absolutely no people skills. Little to no room for advancement unless you are related to a director. Unqualified employees are in management positions.”

“Almost everything in my team was micro-managed. One of the Directors was a control-freak and insecure about “loosing his relevance”. So “just to stay relevant” he created “red-tape” processes by making every small change go thru him with his approval, causing delays to routine work cycles.

“Managers and supervisors only care about bonus for themselves.Representatives can easily be disqualified for bonus. There is also too much favoritism among employees. Promotions happen on the basis if they like you or not and not so much on your qualifications. Some managers like to micro manage their staff by setting excessive production goals. Supervisors are under-qualified and possess little to no people skills.

“At MAXIMUS there is little to no room for advancement or growth. …This company makes unreasonable demands for staff to complete work and unreasonable deadlines. This company does not support personal time off due to family/personal issues.” (so they won’t sympathise with you if you are sick)

“No work/life balance. Projects are incredibly understaffed, combined with perpetually tight deadlines, resulting in an average work week of 60-80 hours. Long nights and lots of weekends.

“Upper management often promotes with in their own inner circle and rarely promotes anyone from operations. Most management has little to no hands on experience and are typically hired because they come cheap or are hired by someone they know.”

Of course not everybody is critical. There are some pro company pieces but they are mainly because evidently the firm offer free medical insurance ( not an issue here yet!), the commute to work was easy and some of the colleagues were good mates.

As one said: “Fairly normal work hours, decent training, clean environment, clean restrooms, free coffee, good feelings from helping people when all goes smoothly, being able to trade shifts with other workers, getting paid every week as a temp, working independently.”

and as a plus “On Fridays we have someone come to our desks with free bags of popcorn.”

No doubt that makes everything fine I think if half of this is true it more a case of pass the sick bag than the pop corn!

 

Coming Soon: The privatised sick note service that will email you back to work

In two months time the traditional doctor’s note excusing you from work will start to cease being valid if you are still sick after four weeks.

Just before Parliament went into the summer recess welfare reform minister, Lord Freud, announced that a US multinational company,Maximus, which also operates in Canada and Saudi Arabia will take over running the new Health and Work Service for England and Wales.

My report in this week’s Tribune  reveals that up to one million people will be affected by the change which appears to be aimed to save the government money.

Maximus runs call centres, occupational health programmes, child support and job seekers programmes abroad and in the United Kingdom.

The programme is to be rolled out from November to next May aims to save up to £165 million a year by getting people back to work faster as part of Lord Freud’s welfare reforms.

The Scottish government  has declined to contract out the work to the private firm and will keep the assessment programme as part of the public service.

More worryingly it appears that the private company which will make the decision will not see anyone – and create a Return to Work programme  via  a call centre telephone interview and a decision by email.

The package is supposed to be agreed between the sick person and the private company and sent to both the individual and their employer. Failure to co-operate with the service will mean the individual will lose their sick pay.

Lord Freud is quoted in a DWP press release emphasising how the scheme will improve economic productivity and get people back to work faster.

He says:”Providing support where it’s needed most will help to reduce the length of time employees take off sick which, in turn, will cut sick pay costs, improve economic output and reduce the chances of people falling out of work and having to claim benefits. “

After the cruel and nasty system that forced disabled people  to find work or lose benefits run by the French company, ATOS, I have a suspicion that this new system could push the sick back to work before they are ready.

While ATOS did this by personal interviews and tests, Maximus look like putting the sick back to work without examining them to see they are fit and well. No doubt the government will see it as another way to tackle the workshy. But even employers’ advisers are sceptical about this. This new development needs watching.