Work and Pensions written question – answered at on 20 February 2012.
To ask the Secretary of State for Work and Pensions whether the Atos contract for work capability assessments includes penalty clauses; whether those clauses have come into effect; and whether he has any plans to implement any such penalty clauses.
The Department of Work and Pensions (DWP) contractual agreement with Atos Healthcare contains performance service levels. The contract also contains financial remedies where there is service level failure based on a pre-estimate of loss to the Department which are described as service credits.
Service credits are considered on a month by month basis taking into consideration any mitigation presented to the Department by the contractor. The Contracts Service Credits regime allows the contractor, in certain circumstances, to recover some or all of the service credit accrued. This mechanism incentivises the service provider, following failure, to re-achieve and maintain the service level position within a reasonable time period.
The actual application of service credits is commercial in confidence as, if disclosed; the information may prejudice the commercial interests of the Atos Healthcare and the Department's future dealings with the Atos Healthcare or other service providers.
The contractual performance and service credits are monitored and decided by the Medical Services Contract Management Team in accordance with the contractual arrangement.
Yes2 people think so
No8 people think not
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