Capita plc secures £565m functional assessment contracts for UK’s vulnerable

Leading the way in ensuring streamlined support for society’s most vulnerable, Capita plc has officially inked two groundbreaking contracts valued at £565m. The company will spearhead the Functional Assessment Service (FAS) in the Midlands, Wales, and Northern Ireland. This announcement follows hot on the heels of the news on 25 May 2023 that Capita had emerged as the preferred bidder for these lucrative contracts.

Commencing in 2024, these contracts are set for a duration of five years, with a provision to potentially extend for an additional two years. The prime objective of the FAS is to amalgamate the myriad of existing assessment services for individuals with disabilities and specific health conditions. By bringing these services under a unified provider within each geographical region, the pathway to access vital support is simplified.

The services under Capita’s wing will encompass assessments for several key benefits, including Personal Independence Payment (PIP), Employment and Support Allowance (ESA), and Universal Credit (UC). Additionally, the scope will cover specialist benefits such as Child Disability Living Allowance (DLA) and evaluations for Veterans UK. Notably, Capita boasts an established track record, having overseen PIP assessments in the Midlands and Wales since 2013 and in Northern Ireland starting 2016.

For those delving into the specifics, the financial breakdown is as follows: The Department for Work and Pensions (DWP) contributes £453.3m, while the Department for Communities (DfC) in Northern Ireland pitches in with £111.4m, summing up the IFRS 15 transaction price over the five-year span.