Huge computer failure cripples benefits system
Computer technicians are today battling to prevent huge disruption to benefit payments after the Department for Work and Pensions suffered a major IT crash.
Eighty thousand computer screens in DWP offices - more than 80 per cent of its total - went blank after a blunder by maintenance staff.
Civil servants have been forced to communicate by handwritten fax in the wake of what has been described as the biggest hi-tech disaster to hit government.
The failure is certain to put the spotlight back on American computer giant EDS, which is already under fire for creating a crisis in the Child Support Agency.
Sources within the DWP said that the US firm is blaming Microsoft for the crash, which in turn claims that the fault lies with EDS.
Child benefits, income support and pension payments have all been affected, although Whitehall insists that few people have been deprived of their entitlements.
A memo said 30 per cent of problems may be eased today with "a full solution potentially taking another 24 to 48 hours".
The memo added: "At this point there is no known solution."
Work and Pensions Secretary Alan Johnson has ordered an inquiry into the role of both Microsoft and EDS.
The computer crisis followscriticism that the department racked up a bill of more than ?400 million in consultancy fees.
Shadow work and pensions secretary David Willetts said: "The Government are spending a huge amount of money while the Department for Work and Pensions continues to provide a very poor service.
"With overhead costs now looking out of control, taxpayers are simply not getting value for money."
CSA chief executive Doug Smith recently quit after it was revealed that computer glitches had led to delays in getting cash to single parents. The agency's ?456 million computer system - run by EDS - has been plagued by a host of problems.
