The Tax Credits fiasco

I’ve spent much of the afternoon listening to the proceedings of the Work and Pensions Committee concerning Concentrix. HMRC had identified 1.5 million Tax Credit cases where they had concerns; they engaged Concentrix, a private firm, to process cases.  Concentrix was reported to have sent out a million letters fishing for information, challenging for example whether they were not living with an undeclared partner; the firm’s representative told the  Committee that they had sent out 324,000, though over a shorter period.  People who did not reply to the letters had their benefits stopped; 90-95% of those who asked for reconsideration had the decision overturned (that was Concentrix’s estimate – HMRC gave a lower figure, of 73%).  HMRC had terminated Concentrix’s contract, but they seemed much more concerned about the collapse of the phone line in August than about the huge number of wrong decisions that their policy had generated. Frank Field MP, the Chair of the Committee, told the Independent:

The Committee was astonished by the extraordinary evidence we heard. From Concentrix we saw a company desperately out of their depth and unable to deliver on the contract awarded to them by HMRC. From senior HMRC officials we saw a palpable disregard for the human implications of this gross failure of public service. From the tax credit claimants we saw dignity in the face of appalling and traumatic experiences.

 

 

One comment

  1. Claire Pearce-Crawford

    I listened to this recording with extreme interest. The fiasco has affected many lives of vulnerable people, leaving some with out payment for months, relying on food banks to feed their children. No apology, no form of redress, yet our taxes pay for this shocking appalling mess that is concentrix.
    Having one client who is still waiting for a payment after 6 months! Disappointing and despicable.

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