Government had been looking for a way to end the contract with Atos but was waiting for a way to get out of the deal without losing the taxpayer money said Department for Work and Pensions minister Mike Penning.
Mr Penning said that if the DWP had sacked Atos "we would have had to have paid millions of pounds in compensation to them. I've had to work with them to actually say we want you to leave, they've announced that they wanted to leave.
"But I didn't want a gap and I wanted a quality and I wanted the backlog sorted out that we've negotiated and done and of course there'll be a large contribution to the tax payer."
More top news
Liverpool edged an epic penalty shootout to beat Middlesbrough and progress to the fourth round of the Capital One Cup.
The world famous musical, which has been running on Broadway since 1997, has broken records earning more than £2.8 billion.
There will be wet weather around tonight with rain drifting from north to south which will lead to scattered showers tomorrow morning.