- 2 updates
The cross-party Commons Public Accounts Committee has accused Atos of providing "incorrect and potentially misleading" information about its capabilities when tendering to carry out claim assessments for the Government for the PIP scheme.
The firm has since agreed to end its contract early.
MPs expressed alarm that the average waiting time for terminally ill people to receive a decision was 28 days, 180% longer than originally expected.
The standard of service for claimants had been "unacceptable", with assessors cancelling home visits at the last minute, and failing to turn up after individuals travelled to assessment centres.
MPs have warned that a flagship government welfare scheme is a "fiasco" that has caused unnecessary distress to thousands of sick and disabled people.
The influential Commons Public Accounts Committee (PAC) said implementation of the Personal Independence Payment (PIP) had been "rushed" and described the impact as "shocking".
Terminally ill people have been waiting an average of a month to be awarded the benefit, which was introduced last year to replace Disability Living Allowance (DLA).
Other claims were delayed more than six months, with some individuals taken to hospital due to the stress of the process and unable to afford medically-prescribed diets.