Functional Assessment Services (FAS)- Prior Information Notice

The Department intends to procure Functional Assessment Service (FAS) contracts from 1st August 2023, to provide functional health assessments through a single supplier in each geographical Lot. Functional health assessment providers support the payment of welfare benefits to some of the most vulnerable in our society. Functional health assessments currently assess eligibility for Employment and Support Allowance (ESA), Universal Credit (UC) and Personal Independence Payment (PIP); focusing on needs arising from a condition rather than the condition itself. These assessments are only one part of the evidence that the DWP Decision Maker will consider and decisions on assessment criteria and benefit entitlement will rest with the DWP Decision Maker alone on behalf of the Secretary of State.

PIP is a DWP benefit intended to compensate for some of the extra costs of those who have long term ill-health or disabilities. It is available to people whether they are in work, training, education or not, it is tax-free and is not means tested. PIP also acts as a gateway to other benefits and support in both DWP administered benefits. Most notably, additional premia in ESA or Carer's Allowance and also wider services, including the Motability scheme and Local Authority services, such as the Blue Badge Scheme. Approximately 900,000 assessments are carried out annually under the current PIP contract (data from 2017/18).

Work Capability Assessments (WCA) currently assess eligibility for ESA and UC. A smaller number of other assessments assess eligibility to a range of benefits delivered by DWP and other Government Departments. Approximately 1 million WCA and a minimum of 100,000 other assessments are carried out annually under the current Health Disability Assessment Services (HDAS) contract (data from 2017/18).

HDAS and PIP assessment services are currently delivered through separate contracts by separate suppliers. FAS will deliver both assessment services through one contract with a single supplier, in each geographical Lot.

DWP will procure a Functional Assessment Service across England and Wales. We are currently working with colleagues in the Department for Communities in Northern Ireland to understand their future commercial requirements. We will be procuring Work Capability Assessments and some other assessments in Scotland, the Scottish government will take responsibility for administering a replacement for PIP assessments from 2022.

We anticipate the use of geographical Lotting and will share further details on the structure of these Lots at a later date. Contract length and value will be confirmed in due course. Our current working assumption is that DWP will provide IT Digital Services (through a managed service), this approach is to be confirmed in due course. DWP's approach to the provision of Estate will be confirmed in due course.

Supplier Event Details Please see attached word document for details of our upcoming Virtual Supplier Even.