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Atos pull out of contract with the DWP to deliver the work capability assessment due to reputational and profitability issues.

What: The company announces it is quitting its five-year £400m contract early, paying to escape prematurely with a “substantial financial settlement” to the Department for Work and Pensions. According to journalist Amelia Gentleman, the company had been advised by a PR firm that it had extremely high brand recognition for all the wrong reasons. The company’s senior vice-president told a select committee hearing that Atos would probably not have bid for the contract had it known then what it now knew. She had told the hearing: “I have shareholders and stakeholders who would not let me bid for a contract that would give rise to both the reputational and profitability issues we are facing now.”

Why significant: Shows the impact of years of campaigning against the WCA and its outsourcing contractors by disabled activists.

Citations

'After hated Atos quits, will Maximus make work assessments less arduous?', Gentleman, 2015