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
Police were called to an address in Carlisle on Friday night but the eight-month-old died later in hospital.
Jamie Vardy scored for a record-breaking eleventh game in a row as Leicester were held 1-1 at home to Manchester United
Gales near coasts and on hills.