Personal Independence Payments (PIP) Assessment Service - Contract Extension - Lot 4 Reference number: UI_DWP_100432

The impact of Covid-19 on health assessment services has been, and continues to be significant. DfC had to act quickly to implement a number of changes to service delivery, both to ensure the health and wellbeing of the public, its own employees and health assessment provider staff, and in response to the effect of the pandemic on the capacity of DfC and its assessment provider to deliver health assessment services. These changes included the temporary suspension of face to face assessments, and the introduction of telephony based assessments. The changes implemented to date, combined with the effect of two waves of the pandemic in the past year and the potential impacts of an impending third wave and possible further waves continue to be challenges to DfC’s efforts to stabilise the service in advance of any procurement. Given that PIP Assessments undertaken as part of the Contract Services support critical statutory welfare benefits catering for vulnerable people, a gap in service provision is not an option. DfC has therefore concluded that extending the existing PIP Contract for up to 2 years is the best option for: (i) stabilising PIP Assessment services, (ii) ensuring a continuous service for these complex and vitally important services, which support delivery of statutory welfare benefits to vulnerable claimants each year and (iii) allowing DfC to fully understand and evaluate the impacts of Covid-19 ahead of any future procurements or decisions on service delivery. DfC will continue to implement steps to secure further efficiencies and service improvements in the way that the existing Contract is currently delivered and in particular throughout the extension period and will monitor performance in order to demonstrate value for money. DfC, partnering with DWP, intends to continue engaging with the market to discuss the future transition of PIP assessment services and the future of health assessments more broadly. DfC will build in periodic reviews (4-6 monthly) to identify whether longer or shorter extensions than 24 months are needed.