AQW 49536/11-16

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 07/10/2015
Answered On Date: 14/10/2015
Priority Written: No

Question:
To ask the Minister for Social Development to detail the costs incurred of the contract with Capita PLC since it was signed in November 2012 to deliver assessments for Personal Independence Payments under Welfare Reform.

Answer:

Contractual payments for services provided by Capita Business Services Ltd will only be made when the service commences and are informed by an exclusively output based financial model.

However, a payment of £1.1m was made to Capita on the 1 August 2014 as compensation directly associated with the failure to implement Welfare Reform. Continued failure to introduce Welfare Reform will mean that further compensation payments will be inevitable and will contribute to the serious financial implications facing Northern Ireland.