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£141m benefits computer shelved | £141m benefits computer shelved |
(about 2 hours later) | |
A new computer system used to process benefits payments has been scrapped at a cost to the taxpayer of £141m, the BBC has learned. | A new computer system used to process benefits payments has been scrapped at a cost to the taxpayer of £141m, the BBC has learned. |
The IT project, key to streamlining payments by the Department for Work and Pensions (DWP), was quietly axed at an internal meeting last month. | The IT project, key to streamlining payments by the Department for Work and Pensions (DWP), was quietly axed at an internal meeting last month. |
The project had been central to delivering savings of more than £60m for the DWP by 2008. | The project had been central to delivering savings of more than £60m for the DWP by 2008. |
It is the latest in a long series of computer problems for the government. | It is the latest in a long series of computer problems for the government. |
DWP pays out around £100bn a year in benefits through a variety of computer systems. | DWP pays out around £100bn a year in benefits through a variety of computer systems. |
'Refocused' | 'Refocused' |
It decided three years ago to combine them into one new system - known as the Benefits Processing Repayment Programme. | It decided three years ago to combine them into one new system - known as the Benefits Processing Repayment Programme. |
But the ambitious project ran into trouble, leading in February this year with a "review" of its progress - effectively a suspension. | But the ambitious project ran into trouble, leading in February this year with a "review" of its progress - effectively a suspension. |
It is pretty disgraceful that after 2.5years of spending public money on this project, the government has walked away from it Phillip HammondShadow work and pensions secretary | |
The BBC has learned that the department's investment committee of senior civil servants decided about two weeks ago to cancel the programme - which had by then absorbed more than £140m. | The BBC has learned that the department's investment committee of senior civil servants decided about two weeks ago to cancel the programme - which had by then absorbed more than £140m. |
The civil servant in charge of the project is believed to have left the department. | The civil servant in charge of the project is believed to have left the department. |
A DWP spokesman said the department acted of its own accord to close the programme after realising the scale of the problems. | A DWP spokesman said the department acted of its own accord to close the programme after realising the scale of the problems. |
It has now "refocused" on developing a new system for a single benefit, the planned employment support allowance. | It has now "refocused" on developing a new system for a single benefit, the planned employment support allowance. |
'No-one sacked' | |
Phillip Hammond, the Conservatives' shadow work and pensions secretary, told BBC News 24: "It is pretty disgraceful that after two and half years of spending public money on this project, the government has walked away from it. | |
"We never hear of somebody actually losing their job because they have failed to implement a project they were responsible for." | |
Mr Hammond said if this had happened in the private sector, that person "would be heading for the door". |
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