Capita bags £140m public sector contract

IT services firm picks up big Department for Work and Pensions deal

Outsourcing giant Capita has snared a five-year public sector contract worth an estimated £140m.

The Department for Work and Pensions (DWP) has given one of three contracts to the company to provide health assessments for the new Personal Independence Payments (PIP) scheme across Wales and central England.

PIP, which is part of the government's welfare reform, is set to replace Disability Living Allowance (DLA) from April 2013, and assessments for new PIP and existing DLA claimants will take place in Capita centres and through home visits.

Paul Pindar, chief executive of Capita, said the company's recent acquisitions in the healthcare sector has put it in a good position to deliver the services.

Although the precise scope of the contract is still being defined, Capita anticipates the deal will be worth about £140m over five years.

"Capita has established an extensive capability in health assessment through strategic acquisitions, including Premier Medical and, more recently, Medicals Direct," said Pindar.

"Together with our existing operations this has created a scalable, diverse and client-focused health and wellbeing business that utilises a multi-disciplinary team... supported by subject matter experts where appropriate."