Concentrix: Tax Credit Claimants

David Nuttall Excerpts

Tuesday 18th October 2016 Westminster Hall

[Several hon. Members rose—]

[Mr David Nuttall (in the Chair)]

Order. As hon. Members can see, this is a very well subscribed debate. I intend to start the wind-ups shortly after 10.30 am, which means that from the outset I will impose a two-minute limit on all speeches.

[Chris Law (Dundee West) (SNP)]

Mr Nuttall, it is a pleasure to serve under your chairmanship.

Over the last few months, I have heard innumerable distressing accounts from people living in my constituency of Dundee about how the failures of this US multinational contractor are driving families immediately into poverty, driving them to food banks, driving them—in some cases—into losing their homes, and driving individuals from my constituency to make calls saying they feel suicidal because they feel they have nothing left to live for.

Unsurprisingly, this is not the first time that Government outsourcing has failed to meet expectations. In the past, we have seen that results-based contracts do not improve the quality of public services. I am sure that everyone in Westminster Hall today remembers Atos, whose shambolic and cruel tests were designed to strip away benefits from sick and disabled people. Under its contract, Concentrix is paid on a payment-by-results model when tax credit claims are cut; in other words, the more tax credit payments Concentrix puts a stop to, the more commission it pockets.

In July, the Social Security Advisory Committee recommended that

“appropriate safeguards are needed to preserve justice for the claimant.”

So far, and as my constituents’ cases prove, that is clearly not being achieved. To add to that, Her Majesty’s Revenue and Customs is continuing to cut jobs right across the UK, while at the same time privatising and outsourcing contracts. HMRC departments that are already understaffed have been left to pick up the pieces; they have spent months dealing with backlogs of claims and errors.

The contract with Concentrix has not been renewed, which is a step in the right direction. However, this Government need to go further. They should not only put an end to the Concentrix contract immediately but call time on awarding any public contracts on a payment-by-results basis. We all need to remember that those of us who have the privilege to be Members of this House are here to serve the public. In that spirit, we need to ensure that organisations that are allowed to act on our behalf demonstrate a similar commitment to service, dignity and respect, rather than to profit. Payment-by-results contracts should have no place in the delivery of such important services—

[Mr David Nuttall (in the Chair)]

Order. I call Mike Wood.

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[Peter Dowd]

Those are important questions, which I am sure the Minister will pick up on in his response. I fear that unless the Government get to grips with their commissioning processes, we will be back here in six or 12 months’ time, looking at another company that has abused a Government contract for profit and, in so doing, deprived some of the most vulnerable people of much-needed financial support. The situation needs to be sorted; otherwise, I fear the fiasco will be repeated and the Minister will be doing an encore in due course.

[Mr David Nuttall (in the Chair)]

Order. I ask the Minister to leave, if possible, a couple of minutes at the end of his speech so that the right hon. Member for Slough (Fiona Mactaggart) has time to wind up the debate.

--- Later in debate ---

[Fiona Mactaggart]

I thank the Minister for that response. This is probably my first experience of leading a debate in which everybody apart from the Minister has agreed with one another. I thank all hon. Members who contributed.

I am particularly concerned about the Minister’s account—I know he is not the Minister responsible, but I hope he will pass this on to the Financial Secretary—which implies that this is just a recent phenomenon, because it is not. It has existed for a long time; it is not just a recent failure. I also do not accept that Concentrix should be wholly blamed. I note that the Minister said it is up to Concentrix to choose which information to use. I would like him to write to me after this debate to tell me whether it is true that HMRC pressed Concentrix to use data on cases in which it was not even able to name the claimed partner. That shows that HMRC is responsible for this oppression of women. The Minister did not note in his response the concern expressed by many Members that this is a gendered policy—

[Mr David Nuttall (in the Chair)]

Order.

Motion lapsed (Standing Order No. 10(6)).