- Posted by: Valerie Vaz MP
- Category: News
HMRC signed a £75 million contract with Concentrix to correct tax credit claims. I am concerned for the growing number of my constituents and others across the UK who have had their tax credits unfairly and unjustly stopped. This failure has placed many people under strain in forcing them to prove their eligibility for tax credits.
I have seen a number of my constituents at my surgery who have been affected by Concentrix’s inadequate service. I have already had three cases where my constituents were unreasonably refused tax credits, one for nearly 3 months, and after my intervention, they finally had their tax credits reinstated.
Following pressure from HM Opposition Labour, the Government have agreed to three key actions on this issue. HMRC have announced that a contract with Concentrix will not be renewed, a decision that has taken far too long to reach. I opposed the outsourcing of work to the US-based company. The Government have been trying to make savings via the backdoor, providing profit incentives to companies who pursue low income families.
Recently Concentrix staff were informed that the service was being brought back in-house after this was raised by the Opposition Labour Party. It is estimated HMRC staff are taking on a backlog of around 2,000 appeals. The Government now needs to announce when a full public investigation will take place and outline their plans to reimburse members of the public who have lost out due to its failure on this issue.