Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 100-119)

Wednesday 10 December 2003

Mr David Anderson, Professor Mansel Aylward CB, Mr John Sumner, and Mr Simon Chipperfield, examined.

  Q100  Mr Williams: It is a challenge which could have a financial solution. Let us see whether what you might save would justify that financial solution. Back to you Professor. I know it is a subjective assessment and it is unfair perhaps to ask this question, but I cannot think of any other way of getting to what I want. What proportion of the decisions would you say are wrong coming from the appeals?

  Professor Aylward: I have not said that. I have not used the word "wrong". What I have said is that of a random sample of cases which were said to demonstrate underestimation of disability by the first tier doctor, of those I felt around half did not demonstrate an underestimation of disability. I disagreed with the doctor's opinion on the Appeals Service.

  Q101  Mr Williams: That is an important difference, is it not? We are talking of cases where, 57% in some instances, one in two of the appeals are successful. Therefore on that basis, if half of those are wrong, there must be massive sums of money going in the wrong direction.

  Professor Aylward: No. If you look at both Attendance Allowance and Incapacity Benefit, about one third are said to underestimate the disability.

  Q102  Mr Williams: Half of those.

  Professor Aylward: Half of those in my random sample. I did not look at all of them.

  Q103  Mr Williams: That still means one sixth and that is still a lot of people and a lot of money, is it not? You must know what these appeals are costing you in terms of extra payout. It would be interesting, if there were some way of doing this, if you could give us some sort of statistical analysis, based on the third being wrong, of what it might be costing you because the appeals tribunals inappropriately overturn the decision of the recommendation at the first stage. Then, if you can tell us how much in ballpark figures that might cost, or if NAO can help you do that—I do not care where it comes from—we can work out what sort of pot of money you may have in hand where you could make sure you get a higher trained quality of person at the appeal end and still possibly save money.

  Mr Anderson: I certainly think we could look at that. I should be cautious at taking the figure of one half of one third, that is one sixth, and saying that is potentially the cases at risk. Professor Aylward looked at a small random sample and that may produce a misleading result. That does not alter the general sense of the argument which says that this difference is significant and warrants investigation. We should try to get an accurate quantification of what is going wrong.

  Q104  Mr Williams: I would ask you and NAO to see what you can get.[4] I know that it is a matter of which information is collected and how it is analysed, but if the two of you could look at this to see. I think you would agree that if we can resolve something from this, there could be quite a substantial saving of money without depriving people who are genuinely in need. May I switch completely to paragraph 3.17? The point is made about decision-makers and people wanting to appeal and why things go wrong when they submit their claims. In the final sentence there it makes the point " . . . general practitioners may not be able to supply all the information required. Many people with disabilities or severe medical problems may be treated by one or more specialists and may rarely see their general practitioner, yet claim forms did not prompt claimants to provide consultants' reports". Surely that is extremely important. Back now to the Professor's point about quality. It is now not just a doctor who has a general field of work but now the consultant's opinion. I would have thought that would have been extremely relevant. Why is that not given top priority in the evidence you seek from people making applications? It would seem obvious to the layman that this should be so.

  Mr Anderson: We are improving the process to make sure that the decision-makers have access to all reports and the forms are being changed.

  Q105  Mr Williams: As we speak, the form is being changed. Will it emphasise the role of consultants? Can you assure us of that, or will it from now anyhow?

  Professor Aylward: When there is a question of diagnosis, then it is important that we seek the advice of someone who is a specialist in making this diagnosis. In that case we do seek the views and opinion of consultants. However, most of the disability benefits are not related to the exact diagnosis of a disorder somebody suffers from, but the effects of that. In that regard we look towards the new speciality of disability assessment medicine. There the consultant and the general practitioners admitted themselves that they are not the experts in assessing the effects of disabilities. Where we need the expertise of a consultant we would seek it and we would probably seek that more with the new forms. When we need to look at the effects, it is far better to get that information to people who are qualified in disability assessment medicine.

  Q106  Mr Bacon: Mr Anderson, in Mr Williams' request for more information on the chart on page 23, Figure 12, could you include, in addition to anything you are going to do for Mr Williams, just a little table which has for each month the actual number of sub-standard medical reports? That will only be about 44 rows long and two or three columns wide, I hope. It would just be interesting to know the gross figures for each month.

  Mr Anderson: Yes.[5]

  Q107  Mr Bacon: Mr Chipperfield, how much do you pay a doctor to do an assessment?

  Mr Chipperfield: It depends on the assessment.

  Q108  Mr Bacon: Incapacity Benefit.

  Mr Chipperfield: It depends whether they are a permanent employed doctor, or whether they are doctors we pay per case.

  Q109  Mr Bacon: For example. Can you give me an example?

  Mr Chipperfield: I do not know.

  Q110  Mr Bacon: A permanently employed doctor to do Incapacity Benefit.

  Mr Chipperfield: It depends; it varies. The range would be around £50k to £70k per annum.

  Q111  Mr Bacon: If they are not a permanently employed doctor, then how much would you pay them, if they are coming in just to do that?

  Mr Chipperfield: I do not know the figure off the top of my head.

  Q112  Mr Bacon: If you could send a note that would be great.[6] How much do you get from the Department for each assessment?

  Mr Chipperfield: I am not so sure that I am at liberty to disclose that information as I believe it is confidential.

  Q113  Mr Bacon: You get £80 million altogether.

  Mr Chipperfield: Yes.

  Mr Bacon: I want to know how much assessments cost.

  Q114  Chairman: I think you could answer that. Why should you not answer that?

  Mr Chipperfield: I do not know whether I am able to answer that or not.

  Q115  Chairman: Are you saying you will not answer or you do not want to or you cannot?

  Mr Chipperfield: I am not sure—

  Q116  Mr Bacon: It is taxpayers' money. We look at how taxpayers' money is spent.

  Mr Chipperfield: I am not sure whether I can answer it. I do not actually have the figures.

  Q117  Chairman: Give us a note then.

  Mr Chipperfield: I am happy to do that.[7]

  Q118  Mr Bacon: Do you think you lose money on assessing Disability Living Allowance?

  Mr Chipperfield: I am not in a position to comment on the commercial aspects of the contract.

  Q119  Mr Bacon: We have witnesses from private sector companies constantly and they often comment on the commercial aspects of contracts. We are a financial committee. Do you think you lost money on assessing Disability Living Allowance?

  Mr Chipperfield: I do not know whether I can answer that question.


4   Ev 16-17. Back

5   Ev 15-16. Back

6   Commercial in confidence-not printed. Back

7   Commercial in confidence-not printed. Back


 
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