CONTROVERSIAL private firms who have made a fortune from misery have been barred from any involvement in assessing disable people for benefits under the new Scottish Social Security agency, the Scottish Government revealed last night.

Minister for Social Security Jeane Freeman confirmed private contractors like Atos, Concentrix and Maximus would not be involved in administrating the 11 benefits being devolved as a result of the post-referendum Vow.

She told MSPs that profit-making should not form a part of decisions about people’s medical capability or making decisions about whether they qualify for help.

The Department for Work and Pensions has employed first French firm Atos and latterly American privatisation specialists Maximus to carry out work capability assessments. Both firms have faced criticisms from campaigners.

Concentrix wrongly branded thousands of people on low incomes benefit cheats and cut off their payments in a bungled multi-million-pound contract aimed at countering fraud.

Freeman said the new system would make faster, fairer decisions and offer face-to-face assistance to those seeking any of the 11 benefits over which the Scottish Government is to received devolved control. Local councils will continue to administer Discretionary Housing Payments and the Scottish Welfare Fund.

Outlining the plans to Parliament, she insisted an enhanced service could be more humane yet still be efficient, with annual running costs estimated at £150 million.

The Scottish social security agency is to have a central headquarters, but will attempt to provide a local presence across Scotland, often by sharing premises with existing public sector agencies. The location for its HQ will be decided in the autumn, however, Freeman said the new agency would employ at least 1,500 staff – making it, overnight, one of Scotland’s largest government executive agencies.

Freeman said: “One of our fundamental principles is that profit should never be a motive nor play any part in assessing or making decisions on people’s health and eligibility for benefits.

“We are building a system based on dignity and respect – this means an assessment process which isn’t demeaning or deliberately difficult.

“I am very clear that assessments should not be carried out by the private sector and I want to give people in Scotland this assurance as we take forward our new social security agency.

“It also means setting up an agency that has a local presence with a human face where people can go to get one-to-one support if required. This is very different to what exists at the moment.

“The new social security agency will be one of the largest executive agencies of the Scottish Government and will employ at least 1,500 staff by the time all devolved benefits are being delivered.

“Setting the new system up is a hugely complex task but a challenge that we relish and one that we are absolutely determined to get right. It is extremely important that we start how we mean to go on – by listening to people and seeking expert opinion to deliver an agency that respects people’s views and is sensitive and responsive to their different needs and requirements.”

Disability rights organisation Inclusion Scotland said “good riddance” to private agencies who have made the lives of many Scots a misery over the years. Director of policy, Bill Scott, said: “Far too many disabled people have been losing their benefits on the basis of poorly carried out assessments where what they have told assessors, and clear medical evidence, has been totally ignored.”