Capgemini fined for tax credits outage

But Paymaster General says only 18 hours downtime out of 14,000 hours of contracted time

Capgemini has been fined nearly £4.5 million for more than 18 hours of 'unscheduled online service disruption' affecting HM Revenue and Customs' tax credit IT system since taking over the department's Aspire contract in 2004.

The figure was disclosed by Paymaster General Dawn Primarolo in reply to Commons questions from Liberal Democrat work and pensions spokesman David Laws.

Primarolo claimed the service credits 'represent a very small proportion' of the annual cost of the contract 'and are commensurate with the low-level technological problems that are typically experienced in service delivery of this size, complexity and value'.

Primarolo said the disruption compared with nearly 14,000 hours contracted time, that 16 hours fell within the first year and that last year [2006] no hours were lost.

The company has been refunded £270,000 for earlier overpayments relating to service system credits.