New benefits IT contract hit by delays, MSPs told

An IT contract to deliver Scotland’s new welfare benefits has been hit by delays, MSPs have been told.

Social security minister Jeane Freeman said the setback had been caused by a delay in the handing-over of a code, adding it was an example of actions of the Department for Work and Pensions (DWP) having “a negative knock-on effect”.

She told Holyrood’s social security committee the incident would not alter the timetable for the first wave of devolved benefit delivery but had amplified concerns over how the DWP was prioritising the handover.

The Social Security Act, unanimously passed by MSPs last week, hands control of 11 benefits to Holyrood.

An £8.3 million two-year contract was awarded to IBM in November last year to deliver a case management system for the first wave of the benefits by summer 2019.

Ms Freeman said she had written to the committee “to explain a delay in the transfer over of a code that has caused us some delay in the delivery of the contract that we have undertaken with IBM”.

She added: “That will not cause a delay to our current timetable for the delivery of wave one benefits but it is an example again of where what the DWP does internally can have a negative knock-on effect to what we’re doing...”

A DWP spokesman said: “We continue to work constructively with the Scottish Government on this and have been very clear throughout that the potential date of 2019 was subject to detailed feasibility.

“We remain committed to working with the Scottish Government to ensure a smooth transition of the remaining devolved responsibilities.”