5 years ago... UK government pays up over social security crash

02.02.99: The UK Contributions Agency has agreed to pay compensation to claimants affected by the severe crash of the National Insurance Recording System (NIRS2) which left many out of pocket.

The computer, designed by Andersen Consulting, cost £170m to build but had to be shut down in July following a series of problems. Hundreds of thousands of benefit claims had to be estimated by National Insurance staff, leaving many underpaid.

Last week, social security secretary Alastair Darling rejected calls for full restitution for those affected by the computer crash. But junior social security minister Baroness Hollis told the House of Lords yesterday that anyone who experienced an "unreasonable delay" would automatically qualify for a one-off payment of £10. Opposition ministers hailed the decision as a U-turn in policy.

02.02.04: Government IT projects have never been synonymous with resounding success and have quite often hit the headlines for all the wrong reasons.

And while each failure proves embarrassing, some blunders are downright expensive - to the tune of £15bn.