Yesterday afternoon, the Financial Times announced that Atos wants to pull out of the WCA programme. Here are the nuggets I picked out.
- There appears to have been no prior press release from Atos on the subject, which suggests that the news was fed directly to the Financial Times - an overtly pro-business paper, which today wrote that "The thrust of [the PM's welfare reform] effort is socially just and economically warranted". Other papers have been obliged to quote the FT.
- The headline was "Outsource group seeks exit from UK £500m benefits contract after death threats", while the first two paragraphs cite "death threats against staff", and criticism from "opposition Labour MPs" that made the political environment "untenable", as the reasons why Atos was "forced" to exit the WCA programme.
- Not only does Atos want out of the contract, it wants out early. It said that it has been trying "for several months" to agree an earlier exit than planned with the DWP.
- Atos also said that the WCA itself was "outdated" and "not working".
- The DWP had nothing to say on the matter.
Here's my take on it:
- The writing style of the piece was nearly identical to previous Atos press statements, which suggests that it is an accurate reflection of Atos's true position.
- Concern about staff safety might be one of the reasons for quitting but I doubt it is the main one.
- There certainly has been criticism from Labour MPs, but in this context I think the term is shorthand for anyone who has actively opposed the WCA or the role of Atos in delivering it. The bad light that Atos has been painted in (and painted itself in) over the WCA is very likely to have been a significant factor in its decision to quit.
- The wish to leave early isn't adequately explained.
- The admission that Atos thinks the WCA isn't working is unusually frank.
- It looks like the DWP didn't see this one coming!
What do I think lies behind it all?
- The DWP's veiled threat to exclude Atos from future government contracts appears to have provoked a counterattack that has caught the DWP off guard.
- The intended message seems to be: 'This contract is dangerous, unpopular and uses a process that doesn't work'.
- Other outsourcers who might be eyeing up the WCA contract will undoubtedly pick up on this, if they didn't think it already.
- Remember, less than a year ago, the DWP and Atos were best buddies working hand in glove. Then something happened between them - something big, something bad...
Seconds out, round three!
