US company that exams eligibility for UK incapacity advantages will pay £10m in dividends

The British arm of a US contractor that earnings from trying out whether or not some other folks in the United Kingdom will have to obtain incapacity advantages has paid £10m in dividends to its buyers.

Maximus, a Virginia-based trade, reported a 23% upward thrust in pre-tax benefit for its UK arm, from £23.6m to £29.1m, in its monetary 12 months to the tip of September, accounts lodged at Companies House display. Its income rose 2%, from £294m to £300m.

The corporate is the largest supplier of practical review services and products, or FAS, for the Department for Work and Pensions (DWP). These exams resolve an individual’s stage of serve as and skill to accomplish on a regular basis duties.

The UK arm of the trade paid out £10m in dividends to buyers, identical to £10,000 consistent with odd proportion, in line with accounts filed at Companies House. The corporate additionally paid out £10m in dividends to its buyers within the 2023 monetary 12 months.

Maximus secured a five-year contract from the federal government in 2023 to supply practical review services and products, at an estimated price of £800m over the length, with the way to lengthen for an extra two years.

In a inexperienced paper printed in March, the Department for Work and Pensions stated reports of tests for the non-public independence cost (Pip) had been “not always positive”.

The nationwide incapacity charity Sense stated “nobody should be rewarded for treating disabled people with disrespect”.

Tom Marsland, of the charity, stated: “Sense’s research found that half of disabled people with complex needs who’ve been through a benefits assessment found it humiliating, and almost half didn’t get the right communication support to properly demonstrate why they need support.

“These statistics are shocking and show a deep-rooted problem with the current assessment process.

“We would like to see the government introduce clear standards to ensure benefits assessments are fair and accessible for disabled people, with no one left feeling like a criminal simply for trying to access the support they need,” he stated. “There should also be financial penalties for assessment providers who fail to provide the right communication support and accessibility measures.”

The executive plans to scale back eligibility for Pip and the well being part of common credit score. As a end result, respectable figures recommend 3.2 million other folks may just lose a median of £1,720 a 12 months and 250,000 other folks might be driven into relative poverty.

Maximus UK is a part of a larger US organisation this is indexed in New York with a marketplace price of $4.2bn (£3.1bn). Shares within the trade, which additionally supplies management and services and products for US programmes comparable to Medicaid and Medicare, have dropped 12% previously 12 months.

Bruce Caswell, the executive govt of Maximus, used to be paid a base wage of $886,904 in 2024, with inventory awards, incentive plans and different reimbursement taking his overall package deal to $10.2m.

A DWP spokesperson stated: “All Pip assessments are independently audited to ensure claimants are receiving the same high-quality service, regardless of which contractor conducts it.

“To support this further, contractors are appointed through an open, transparent, and competitive process, and we monitor their performance closely and ensure they consistently meet the standard required.”

Maximus declined to remark.