Protesters carry placards during a protest against Atos outside the company's head office in London on August 31, 2012. Photograph: Getty Images.
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Atos's departure isn't enough - fit for work tests aren't working

Unless the system itself is reformed, the sick and disabled will fare no better under a new provider.

The news that Atos has exited its contract to carry out work capability assessments, more than a year before it was due to expire, has prompted rejoicing among its many critics. The French company has been under attack for years over the tests, which assess the suitability of the sick and the disabled for work. More than 600,000 appeals have been lodged against its decisions since the WCA was introduced with 40 per cent overturned. "Atos kills" is the slogan daubed on London walls, a reference to the 10,600 people who died during or within six weeks of undergoing the test. Dennis Skinner memorably branded the company a "cruel, heartless monster" during PMQs last year, calling on David Cameron to "abolish" it, and Labour similarly urged the government to "sack" it.

That, according to ministers, is what the coalition has now done. While Atos sought to give the impression that it walked, disabilities minister Mike Penning suggested that it was pushed. He said this morning:

The previous government appointed Atos as the sole provider for carrying out work capability assessments and since then we have carried out several independent reviews and made significant improvements to the assessment.

Today we are announcing that we are seeking a new provider to replace Atos, with the view to increasing the number of assessments and reducing waiting times.

I am pleased to confirm that Atos will not receive a single penny of compensation from the taxpayer for the early termination of their contract; quite the contrary, Atos has made a substantial financial settlement to the department.

But while the departure of Atos is being celebrated, on its own, it won't be enough to end the problems with the system. As GPs and others have warned, it is the work capability assessment itself, not merely its administrators, that is fundamentally flawed. It rests on the premise that a 30-minute test, comprised of tasks such as moving an empty cardboard box and using a pen, is capable of determining whether someone is able to return to work. As GP Andrew Holden noted: "Since the system was introduced in 2008, people with terminal cancer have been found fit to work, people with mental health problems have complained their condition is not taken seriously and people with complex illnesses say that the tick-box system is not able to cope with the nuances of their problems," he told the conference, proposing the motion.

"The computer-based assessments are carried out by a healthcare professional but one not necessarily trained in the field of the patient's disability, which is particularly important when it comes to mental health issues."

With the government merely stating that it hopes the new provider will increase "the number of assessments" and reduce "waiting times" (suggesting a crude focus on costs), the risk is that Atos's departure is just used as an excuse for a convenient rebrand. 

George Eaton is political editor of the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.