EDS charged with lack of understanding

EDS failed to deliver required standards at Wandsworth Borough Council because the services giant is too wealthy to understand the problems claimants face, according to one of the councillors responsible for hiring the company.

Maurice Heaston, policy and resources chairman at Wandsworth Council, told PC Dealer that problems with tax benefits developed because EDS 'was a wealthy blue-chip company unable to understand the sort of people that need help'.

At a meeting on 17 September, the council gave its approval to suspend EDS from housing and council tax benefits. It is continuing to dock payments while considering a compensation offer from the company (PC Dealer, 23 September).

Heaston said the #15 million contract it signed for six years with EDS did not allow the council to hire another company. If it wanted EDS out in the next three years, it would have to take on the work itself.

A spokeswoman at EDS claimed the comments were 'scurrilous' because EDS staff were employed by the council before the contract was signed. She insisted service level targets were not acheivable under the current contract.

Meanwhile, EDS admitted it is in discussions with Kingston Borough Council over a backlog in its #6.6 million contract for council tax and housing benefits.

A statement said: 'Contractual issues regarding complaints levels and rejections are being addressed.'