Atos and Capita have been awarded a contract by the Department for Work and Pensions to test the eligibility of disabled persons for benefits in a contract worth more than £540 million.

The contract will cover 5 years and cover three regional areas separately. The assessments for health and disability will be for the newly introduced Personal Independence Payments (PIP) system, replacing the Disability Living Allowance (DLA).

The government are aiming to cut disability expenditure by 20 percent with a estimated half a million expected to lose claims.

The Disability Rights UK spokesman said: “A lot of people blame Atos but they need to remember it is working within government guidelines. Their anger should be directed toward the DWP.”