HC Deb 07 November 1996 vol 284 cc687-92W
Mr. Burden

To ask the Secretary of State for Social Security (1) if he will make it his policy that the practice whereby hospital case notes are currently supplied free of The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking how many people were transferred from Reduced Earning Allowance (REA) to Retirement Allowance (RA) between 1st April and 1st October in each Benefits Agency (BA) region. The information is not available in the format requested. Statistics are collated by BA Area Directorates, not on a regional basis. In order to assess those people who might be transferred to Retirement Allowance under amending legislation (Social Security (Industrial Injuries and Diseases)(Miscellaneous Amendments) Regulations 1996) which came into force on 24 March 1996, the Benefits Agency identified all Reduced Earnings Allowance recipients over pensionable age as at 24 March 1996. From 24 March to 30 September 1996, 21,299 have had their entitlement to REA transferred to RA. This includes REA recipients who attained pension age before and after 24 March 1996. The information is shown in the attached table. I hope this reply will be helpful.

Benefits agency area directorate Number of REA cases transferred to RA
East London and Anglia 857
Chilterns 402
London South 2,019
West Country 878
Mercia 2,640
West Midlands 780
Wales 2,109
North West Coast 1,767
Greater Manchester 1,666
Yorkshire 2,002
Tyne Tees 4,398
West of Scotland 507
East of Scotland 1,172
Overseas 102
Total 2,1299
Figures are provisional and subject to amendment.

charge by the NHS to the Benefits Agency medical services will continue, should private companies win the contracts currently on offer under the contracting out of the operations of the Benefits Agency medical services; and if he will make a statement; [754]

(2) if he will make it his policy that the practice whereby external medical opinions are currently obtained free of charge under NHS authorisation to the Benefits Agency medical services will continue, should private companies win the contracts currently on offer under the contracting out of the operations of the Benefits Agency medical services. [755]

Mr. Burt

We are currently discussing this issue with officials from the NHS executive. These discussions should be concluded within the next few weeks. Whatever the outcome of these, it is imperative that the provision of these services will not lead to any increase in the expenditure of public funds.

Mr. Burden

To ask the Secretary of State for Social Security if he will make it his policy that, where private contractors be charged for the service whereby external medical opinions are currently obtained free of charge under NHS authorisation to the Benefits Agency medical services, his Department will guarantee that the private companies will not reduce the number of cases for which external medical help is sought; and if he will make a statement. [753]

Mr. Burt

In any case referred to an external medical supplier, the contractor's doctors must be able to supply adequate reasons for the advice being given. If it RS not possible for them to advise on the evidence already available then they must seek information from other sources. The Department will not be satisfied with advice which is not fully supported by documentary evidence. This will be stated in the terms of the contracts with any private contractors and will be rigorously monitored by the contract management team. It is not anticipated that the number of requests for further medical evidence will be reduced.

Mr. Burden

To ask the Secretary of State for Social Security (1) if he will stipulate in the contracts awarded to companies bidding to undertake the assessment of claims for incapacity benefit currently performed by the Benefits Agency medical services the target number of clients for this benefit to be seen per session by doctors employed by these companies to evaluate the eligibility of claimants; [751]

(2) if he will stipulate in the contracts awarded to companies bidding to undertake the assessment of claims for incapacity benefit currently performed by the Benefits Agency medical services, (a) the annual number of cases to be reviewed, (b) the annual maximum number of clients that will be deemed eligible for incapacity benefit and (c) the total amount of benefit to be authorised. [737]

Mr. Burt

The Benefits Agency has never set targets covering the number of people who should be allowed or disallowed benefit.

Performance indicators and targets for the potential service provider of the medical service have not yet been set: they will be matters for discussion and negotiation prior to contract(s) being awarded.

The set targets will relate to how the service is delivered rather than decisions on entitlement to benefit.

Mr. Burden

To ask the Secretary of State for Social Security (1) which were the companies involved in(a) the partnering exercise and (b) the collaborative study into the Benefits Agency medical services before the decision to contract out the Benefits Agency medical services; which were the companies that were later involved in tendering for the subsequent contracts; and if he will make a statement; [746]

(2) which were the firms that were involved in the feasibility study to determine contracting out of the Benefits Agency medical services and which have been shortlisted for the three geographical areas; when he expects the final decision to be (a) made and (b) announced; and if he will make a statement. [747]

Mr. Burt

A partnering project team was established in September 1994 to look for ways in which the private sector could be involved in the future delivery of a medical service. Advertisements were placed in the national press seeking expressions of interest from suitable companies to undertake a collaborative study with the project team. The companies chosen to take part in the study were BMI, Capita and Serco.

The three companies undertook independent studies of the Benefits Agency medical services, BAMS, organisation. Assessment of their reports concluded that the work of BAMS could be contracted to the private sector.

In June 1996 an advertisement was placed inviting expressions of interest: five companies were subsequently chosen to enter into negotiations with the Department for the provision of a medical service. Those companies are Andersens, BMI, Capita, EDS and Sema.

Some of the information that was made available during the collaborative study is now out of date. Shortlisted contractors who have been invited to enter into negotiations will receive all relevant information to ensure they fully understand the requirements, and to ensure that they are able to develop proposals based on the same information. No advantage will accrue to the companies who participated in the collaborative study.

A final decision and subsequent announcement is anticipated by April 1997.

Mr. Burden

To ask the Secretary of State for Social Security if he will make it his policy that any private company bidding to undertake the medical assessment of claims for incapacity benefit from the Benefits Agency medical services and acquiring confidential data in the course of their assessments will be legally prohibited from (i) using and (ii) disclosing that information for their other commercial interests in(a) private health care and (b) all other commercial applications; and what measures his Department intends to use to investigate such eventualities. [759]

Mr. Burt

The Department places strong emphasis on customer confidentiality and would demand the same standards from the successful contractor or contractors. The contractor(s) will have a mandatory contractual requirement to conform to the security policy of the Department which is based on Government security policy.

The successful bidder or bidders will be required to ensure that any data or information passed to them by the Department or a third party, or revealed during the course of the contract, is used only for the purpose directly relating to the Departments business and only by the appropriate staff.

Rigorous monitoring systems will be put in place to ensure on-going compliance with the requirements.

Mr. Burden

To ask the Secretary of State for Social Security if, following his Department's decision to contract out the functions of the Benefits Agency Medical Services, he will give the rationale for his Department's decision to use the negotiated procedure in respect of contracting out the functions of the Benefits Agency medical services, rather than the restrictive procedure for the shortlisted firms. [748]

Mr. Burt

The use of the negotiated procedure is considered to be less adversarial than the restrictive procedure. It provides an opportunity for meaningful two-way dialogue, allowing the necessary flexibility for discussions and negotiations, thus ensuring better informed and higher quality bids.

Mr. Burden

To ask the Secretary of State for Social Security if he will make it his policy that, following his Department's decision to contract out the functions of the Benefits Agency medical services, commercial considerations will not affect the decisions to obtain the consultants' reports that enable doctors to make full and professional assessments of claimants for incapacity benefit. [752]

Mr. Burt

In the majority of cases, a consultant's report is obtained at the request of the customer. On

occasions the contractor or contractors will need to obtain a report from a consultant as this will represent the most satisfactory way of establishing the evidence necessary to advise the adjudication officer.

Post contract management arrangements will ensure that the contractor(s) achieve the correct balance between customer care and profits.

Mr. Burden

To ask the Secretary of State for Social Security if he will revise(a) the target number of clients for incapacity benefit seen per session by doctors of (i) the Benefits Agency medical services and (ii) any private contractors successful in their bid to take over the functions of the Benefits Agency medical services and (b) any other aspect of the service; and if he will make a statement. [750]

Mr. Burt

One of the primary objectives in contracting out Benefits Agency medical services is' to improve the provision of a medical service to the Department.

The Department will be specifying the outputs in terms of service delivery in a way that is measurable.

Whilst the output will be specified, how the contractor achieves the specification will not, thereby providing the contractor with the maximum flexibility for delivery of the service.

Mr. Burden

To ask the Secretary of State for Social Security if individual members of the assessment panel responsible for the recommendation for full contracting out of the functions of the Benefits Agency medical services were allowed to put in a bid for the resulting contracts; and if he will make a statement. [749]

Mr. Burt

The medical service to be contracted out to the private sector was advertised in theOfficial Journal of the European Community and Government Opportunities.

Following the response to a questionnaire completed by the private sector and individuals working in the Benefits Agency medical services, a full and auditable evaluation of responses was undertaken resulting in five private sector companies being invited to go forward to the next stage of the procurement process.

No individuals included in the assessment panel are involved in the bidding process for this service.

Mr. Burden

To ask the Secretary of State for Social Security what efficiency savings his Department estimates will accrue from the decision to contract out the functions of the Benefits Agency medical services. [767]

Mr. Burt

It is not possible at this stage to estimate the precise level of savings. However, experience of similar exercises within the Department has identified that efficiencies will be gained in all cost areas of the contract or contracts.