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Shares in Capita have plummeted 40% today after it warned that I’s profits were going to be much lower than expected and warned that no dividends would be paid. It is also trying to raise £700 million and is going to sell non-core parts of the business.

The news comes in the wake of the collapse of government outsourcing firm Carillion just two weeks ago.

Chief executive Jonathan Lewis stated:

“We are now too widely spread across multiple markets and services, making it more challenging to maintain a competitive advantage in every business and to deliver world-class services to our clients every time.

“Today, Capita is too complex. It is driven by a short-term focus and lacks operational discipline and financial flexibility.”

For claimants, the question now will be whether Capita counts PIP assessments as a profitable and core part of its business.

If the company were to try to walk away from its PIP assessment contract just as the DWP announces that it is looking again at 1.6 million PIP awards it could throw the entire PIP regime into even more chaos.

Comments  

#6 derek carter 2018-02-05 12:48
With all these reassements, can anyone tell me what is the the effect this will have on people like me. I am 66 years old and still receiving DLA, having still not been called in for reassements
+1 #5 Elisa 2018-02-01 16:19
They will just give it to maximus or atos, its all just a stalling process anyway. If the gov really intended to look at the actual claims affected by this rule change, those from 20th Oct 2016 when assessors were told to use the new rules, it would be a simple database search. I have looked at our sons report and it is simple. The element that is not reported on is obvious and it is as if the nurse doing the assessment has almost apologised for it. This was on the 31st Oct 2016. He lost his mobility award and was only given the 4 points.
+5 #4 donald king 2018-02-01 10:56
Anyone who works as an HCP ought to be ashamed of him or herself. They either have no idea of what their work is actually for, or thinks 'welfare reform' is a good cause. It's like working for a sleazy porn site during the week and then going to church on Sunday.
+2 #3 Frogman9 2018-01-31 17:44
I agree we should go back to the old system of DWP medicals where you were seen by a doctor.....but I doubt it as a doctors duty of care is to the patient not the DWP's coffers.
+2 #2 ThisGovernmentsGoneToFar 2018-01-31 17:40
Well it's like being on a magic roundabout? He we go again. Greed greed and more effing greed. Leave us a lone.
+3 #1 mrfibrospondodysthmatic 2018-01-31 15:13
Capita's PIP Assessments are all bonus driven. This means if they drop PIP assessments, which lets face it they were pathetic at doing, by employing inexperienced so-called HCP's, then some other idiot of a company morelikely a foreign concernwill put tenders in for this appalled contract.

Hence the bonuses for this new company will be smaller in size, and to gain profits, their HCP's will need to be even more inexperienced to kick claimants of their benefits, in turn to receive bonuses.

The only way forward is to outsource it to a UK company (maybe) but the difference being more input from a claimants GP, specialist, hospital, MHT or whatever should be listened to, and should carry more weight during assessment.

Not just disregarded, and trying to make out the claimant is a fraud. Piles of evidence should lead to more paper assessment's being awarded, not PIP F2F's its an utter waste of time and money.

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