US firm that tests eligibility for UK disability benefits reports 23% rise in profits

The British arm of a US contractor that tests whether some people in the UK should receive disability benefits has reported a 23% rise in profits.

Maximus, a Virginia-based business, reported an increase in pre-tax profits for its UK arm from £23.6m to £29.1m in its financial year to the end of September, accounts lodged at Companies House show. Its revenue rose 2%, from £294m to £300m.

The company is the biggest provider of functional assessment services, or FAS, for the Department for Work and Pensions (DWP). These tests determine a person’s level of function and ability to perform everyday tasks.

Maximus has provided health assessments on behalf of the DWP for a decade, evaluating how much someone’s health condition or disability affects their ability to work as part of claims for universal credit or employment and support allowance.

The company secured a five-year government contract in 2023 to provide functional assessment services, at an estimated value of £800m over the period, with the option to extend for a further two years. This included carrying out assessments for the personal independence payment (Pip) from autumn last year, a period not covered by the results.

In a green paper published in March, the DWP said experiences of Pip assessments were “not always positive”.

The national disability charity Sense said that “nobody should be rewarded for treating disabled people with disrespect”.

Tom Marsland from the charity said: “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 said. “There should also be financial penalties for assessment providers who fail to provide the right communication support and accessibility measures.”

The government plans to reduce eligibility for Pip and the health component of universal credit. As a result, official figures suggest 3.2 million people could lose an average of £1,720 a year and 250,000 people could be pushed into relative poverty.

Maximus UK is part of a bigger US organisation that is listed in New York with a market value of $4.2bn (£3.1bn). Shares in the business, which also provides administration and services for US programmes such as Medicaid and Medicare, have dropped 12% in the past year.

Bruce Caswell, the chief executive of Maximus, was paid a base salary of $886,904 in 2024, with stock awards, incentive plans and other compensation taking his total package to $10.2m.

A spokesperson for Maximus said: “The figures … represent the entirety of our business in the UK, which delivers employment, skills, health and customer services contracts for a range of commissioners. We are proud to employ more than 5,000 colleagues across the country and continue to invest in our UK operations.

“We are committed to delivering an expert, respectful and sensitive service to customers. Maximus has delivered health assessments on behalf of the DWP since 2015. In that time, we have invested in specialist training, reduced the amount of time a customer spends in the assessment process, and provided additional support to make the process more accessible.

“We have achieved year-on-year improvements in customer satisfaction by working in collaboration with charities and expert partners, seeking feedback and continuously improving the service we provide.”

A DWP spokesperson said: “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.”