Concentrix

Gerald Jones Excerpts

Wednesday 26th October 2016 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

I am grateful for the opportunity to speak in this important debate. In common with other hon. Members, I have been appalled by the complaints that my office has received about Concentrix from worried constituents who have faced extreme hardship following its actions. I understand that a provider may want to conduct checks to ensure that money is provided to the right people, but stopping money to parents in this way while checks are carried out is wholly unacceptable. As many Members have said, Concentrix’s action has caused extreme hardship to many of my constituents and people across the country. People invariably use this income to provide food and essentials for their children, and it is totally unacceptable for them to be without that money for a period of time. As we have heard, the situation has resulted in many families relying on food banks—that has certainly been the case in my constituency—and in some cases people have been going without. This is utterly shameful.

It is not as though Concentrix has been quick about some of its checks; the majority of people seem to have had money withheld for two months or longer. How can people, many of whom are already on a low income, be expected to cope for long periods of time? One of the many cases my office staff have dealt with relates to a constituent who had her tax credits stopped because it was believed that she had an undeclared partner—we have heard similar stories this afternoon. Following much stress, and my constituent having to provide extensive evidence that she did not have an undeclared partner, it transpired that the basis of the action by Concentrix was out-of-date records of a previous tenant at the address. In a similar case, a constituent had her tax credits stopped because Concentrix required evidence that the tenant lived alone, as a random check on the electoral register had shown a previous tenant. It transpired that that previous tenant was now in prison. In yet another case, a constituent wrote to Concentrix to confirm and provide evidence that she was a single parent, yet it still took two months to investigate and reinstate the claim.

I could highlight a good many more cases, but I accept that a number of Members wish to contribute to the debate and that many of these cases are similar. The common factor is the lack of understanding or compassion on the part of the contractor engaged by HMRC. We know that many payments were stopped but that the decision was successfully overturned in around 90% to 95% of cases that went to appeal. Although Concentrix must bear its share of responsibility for the hardship that people have faced in recent months, HMRC, too, has to bear its share for allowing the situation to become such a mess. Does the Minister accept responsibility for the lack of scrutiny, and what lessons is HMRC learning from this debacle?

Concentrix’s failures have laid bare policy failures by the Government, because it certainly appears that, in this whole episode, there has been a deliberate attempt to target single parents. Again, if HMRC had been monitoring the contract, the situation might not have accelerated to the extent that we have seen. Lessons must be learned. Actions by Concentrix have caused extreme hardship and have completely lacked in compassion. As my hon. Friend the shadow Chief Secretary to the Treasury outlined, many of these cases have involved real suffering. People in Merthyr Tydfil and Rhymney and across the country deserve answers, and I look forward to hearing them from the Minister today. I thank the Minister for supporting the motion and for not seeking to divide the House this afternoon.