HMRC Closures

Joe Benton Excerpts

Tuesday 26th March 2013 Westminster Hall

[Mr Gauke]

As far as we can see, the driver for the fall in the number of people using inquiry centres is that people prefer to use other means of communication. There are always particular challenges within the tax system that might cause an increase in demand and phone calls. Steps are taken to reduce some of that demand from time to time.

In that context, it is worth turning to the research, which the hon. Lady touched on, that helped guide HMRC in its decision. It was undertaken by an independent agency, adhering to strict industry guidelines, and its findings confirm that face-to-face support works best for some HMRC customers who need extra help. It also says that any service for customers who need extra help must be as flexible and as accessible as possible, which is why HMRC is introducing specialist, expert over-the-phone help and working closely with the voluntary and community sector. A face-to-face service is an important part of the proposal, but it is worth underlining that the inquiries of the 2.5 million or so who visit HMRC centres are satisfied over the telephone. They use the inquiry centres to phone contact centres, which leads us to the important issue of ensuring that contact centres provide an adequate service.

I shall take this opportunity to respond to the hon. Lady’s questions. The number of call attempts handled for February this year was 91.8%, which is considerably higher than it has been at any time since HMRC’s formation. I remember that the number was 45% for 2010-11, and I think it was about 75% for the previous years, as it has been subsequently. HMRC’s ability to handle calls has therefore increased, which is welcome progress, and that, to be honest, is what we should expect from HMRC—progress on the standards.

To elaborate on the point I made a moment or so ago, HMRC’s analysis of inquiry centre use shows that 84% of the centres’ customers did not need a face-to-face meeting and were able to get the help they needed over the phone or online. The 400,000 customers who did need face-to-face advice had to travel to their nearest inquiry centre to make an appointment, and if there was no appointment free at that time, go back on another day to take up their appointment. The service is not particularly convenient even for those who do have a centre nearby.

HMRC’s research, which I referred to a moment ago, shows that up to 1.5 million customers need extra help with their tax and benefits affairs. Many just need help for a specific event in their lives—for example, when they approach retirement, deal with the death of a family member or declare new income for the first time—and others may have low literacy or numeracy skills, or difficulties coping with their affairs as a result of a mental health condition. Most of the 1.5 million people who need extra help do not currently use an inquiry centre. HMRC has researched the needs of those customers and that research has helped in the design of the new service.

The new service will provide specialist expert help over the phone for those who need it, and its advisers will take the time to sort out issues if they can. Customers will be able to phone from home and arrange a call-back if they cannot afford the call themselves, or they may use a free phone at a local Jobcentre Plus. Customers needing extra help will be quickly identified and put straight through to a trained adviser who has more time, as well as the skills, knowledge and empathy needed to handle the inquiry at a pace that suits the customer.

If the adviser cannot sort out issues over the phone, face-to-face support, delivered by a mobile adviser, will be arranged at a place and time convenient to the customer. It might be at a library or a local authority location close to the customer’s home, but I must reassure my hon. Friend that it will not involve the Isle of Wight ferry service. If someone needs a home visit, HMRC will arrange for a local home visitor to contact them and arrange a convenient appointment time between 8 am and 8 pm every working day. That is much more convenient than being constrained to a fixed location that is potentially difficult to access and often open for only one day a week. Extra help will also be delivered through voluntary and community sector organisations, such as Citizens Advice and TaxAid, with additional funding from HMRC.

The new service will be not only better but more cost- effective. Customers will save an estimated £12 million a year, through such things as reduced travel costs, and from April HMRC will convert its 0845 numbers to 03 numbers, making calling HMRC cheaper for all customers.

The current network of 281 inquiry centres is unsustainably expensive. The average cost of an appointment across the network has risen from £106 in 2009-10 to £152, and in some inquiry centres it is up to £500. By comparison, it costs an average of £3 per phone call and just 9p per online transaction. Members will appreciate that that expense is just not sustainable in the current economic climate. The new service will save HMRC up to £13 million a year.

HMRC will reinvest some of the savings from the closure of the inquiry centre network into the new face- to-face service and the voluntary and community sector support. To ensure that the phones are answered when people call, HMRC is investing £34 million in its contact centres. HMRC has also worked extremely hard to make big improvements to its customer service following the Public Accounts Committee report, which was touched upon by my hon. Friend the Member for Isle of Wight and the hon. Member for Newcastle upon Tyne North. As a result, it currently answers more than 90% of the call attempts it receives each week.

In designing the new service, HMRC has worked closely with a number of voluntary sector partners, including Citizens Advice, as well as tax charities such as TaxAid and Tax Help for Older People. On 14 March, HMRC launched a public consultation on how the new service would be implemented. The consultation focuses on the following: how a new service would be delivered in practice and whether refinements are needed for particular customer groups; the impact that closing inquiry centres would have on local communities, customers and diversity groups; the impact of the new service on the voluntary and community sector; and the support needed for customers to make the transition to other channels. The public consultation will enable staff also to feed in their views, and a summary of the responses will be published by the end of summer 2013.

A pilot of the new service in what I should perhaps describe as the greater north-east of England, will involve closing 13 inquiry centres and testing the new service between 3 June and 31 October 2013. That will help in gathering more information to ensure that the service is absolutely right for the customer, and a decision on whether to roll out the service nationwide will be made in December 2013. If the roll-out proceeds, the new service is expected to be launched between February and May 2014.

In conclusion, HMRC is making the changes in order better to meet the needs of the 1.5 million customers who need more help with their tax and benefits. HMRC is modernising its approach to break free from the outdated network of bricks and mortar and to provide a more flexible and accessible face-to-face service for people who really need it, including on the Isle of Wight. The proposals will target help at those who need it most, in a way that is better for them and more cost-effective for both them and the taxpayer. As a responsible employer, HMRC is taking all the right steps to minimise the impacts that the changes will have on its staff.

[Mr Joe Benton (in the Chair)]

The sitting is suspended until 4 o’clock.

Finance Bill

Joe Benton Excerpts

Monday 12th July 2010 Commons Chamber

[Andrew George]

The corollary to the corporation tax cut is the banking levy, but although I respect the information that my hon. Friend has given in his reply so far, he has not yet addressed himself to the criteria for the setting of the banking levy and why it has been set at the proposed level—[Interruption.]

[The Temporary Chair (Mr Benton)]

Order. The background noise is a little high. Will Members please keep it down?

[Mr Gauke]

Beginning tomorrow, we will consult on the bank levy. The intention is to find a means of discouraging risk, and that is why the targeted approach of the bank levy is appropriate. It will raise additional revenue, and it is right to do so. We think that we have the balance right in raising additional revenue while enabling banks to lend more, and we are also taking steps to encourage that further.

In conclusion, I think that I have satisfied the concerns underlying the amendments and I hope that the amendment will not be pressed to a Division.