Concentrix

Lisa Cameron Excerpts

Wednesday 26th October 2016 Commons Chamber

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

This has, indeed, been a very passionate debate. I would like to take this opportunity—I am sure I speak for all Members on both sides of the House—to thank our staff members in our constituency offices who have had to deal with people who have been at the very end of their tether. Many have had no training and have met people in the most dire circumstances. I would like to place on record our thanks to all the staff of all Members on both sides of the House.

As we know, tax credits are a vital financial lifeline for many families who are struggling to get by on low wages. They allow single mothers and fathers the dignity of work, by ensuring that their income is enough to pay for rent and food and for heat for their homes. Without these payments, families have been plunged into immediate poverty, with all the financial and emotional stress that comes with coping with such a situation.

Despite many parliamentary questions and two debates, we are still no closer to finding out the facts or achieving a proper settlement to this sorry situation. At the same time, families know that their situation was entirely caused by the mistakes of others and as a direct result of faulty administrative processes and procedures, all of which must be fixed. Compensation must be paid.

I would like to refer to a particular case study. A constituent in Alloa was referred to my office just yesterday by the citizens advice bureau. Seven weeks ago, she had her money stopped without warning. She was accused of living with three different partners at the same address at the same time. Advised by Concentrix that she had been sent a letter in May—a letter she said she did not receive—she was then told the evidence she was required to submit. She submitted what she could: two bank statements and a council tax statement. She was told that that was not enough. She could not afford, however, to provide the bank statements requested, as they cost £5 per statement.

The realistic timeline for Concentrix cases needs to be known. Despite the assurances I was given by the Financial Secretary on 14 September, it is still taking around eight weeks from the submission of evidence by those falsely accused by Concentrix for payments to be reinstated. That is two months without vital payments—payments that are stopped without warning and with no good cause.

On the phone yesterday, HMRC advised my office that the burden of proof remains on the individuals accused of claiming tax credits incorrectly, not on the accuser. That is contrary to the laws of natural justice and contrary to the view of the upper tribunal, which has already considered similar issues.

For the Minister’s benefit, I would like to set out a timeline for an individual who is accused. On day one, their money is stopped. They call Concentrix to find out what has happened, and they are advised of what action is needed. It can take days to get an answer. On day two, they start to collate the evidence required. HMRC stated to my staff yesterday that it required the following evidence to establish innocence after making these accusations: bank statements for a period often up to a year; mortgage proof or a rental agreement; a court or solicitor’s letter providing detail of legal separation documents; Child Maintenance Service documents; evidence from the Department for Work and Pensions or Jobcentre Plus to show the benefits claimed, if applicable; car insurance documents; home insurance documents; detailed explanation of the person’s relationship status with the person they are accused of being in a relationship with—in this case, it is three people, two of whom my constituent does not even know; and a letter from the landlord to confirm who lives at the property.

That takes us to day six, when the person sends that evidence to HMRC, if they can afford to bring it together. On day seven, the evidence arrives at the HMRC and Concentrix offices. On day 28, HMRC begins to look at the case. People in previous cases have told us that it would take two to three weeks before the evidence could be looked at, due to a backlog in processing cases. On day 56, the evidence is processed by HMRC. Once the evidence pack is opened by HMRC staff, it takes 15 to 20 days to process. On day 60, there is a positive result—if the person gets a result—as money will be paid to them within four days. That is eight weeks’ processing between the submission of documents and payments being reinstated.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

In the intervening period, many of the individuals affected have experienced grave mental health issues. I am aware of at least two cases where people have gone on to self-harm as a result of the stress endured. Does my hon. Friend agree that the targeting of the most vulnerable is not something that should be happening under Government contracts?

[Ms Ahmed-Sheikh]

My hon. Friend makes a very good point. She has huge experience in the area of mental health. I am sure it is a matter of great concern and disturbance to us all to hear that people are resorting to self-harm.

My constituent continues to wait, as HMRC refuses to act until it has received a year’s worth of bank statements that she cannot afford to provide. HMRC did not inform her of the hardship payment. Will the Minister advise us on the guidelines with which HMRC is working in relation to the hardship payment? Is it not offered in all circumstances? Are not all people in positions of hardship once they have had these payments stopped?

In order to support those affected, we must immediately take a number of actions to remove the financial barriers to justice for these victims, and I ask the Minister to consider committing to these today. HMRC should immediately provide a freephone line for victims to use. As things stand, if someone wants to ask a question or appeal a decision, it is up to them to phone the call centre, and that can cost 10p a minute. Some callers have had to wait for hours, as confirmed in many speeches. Over and above this, HMRC should now act to provide a free call-back service for tax credit inquiries. HMRC should also meet the full cost of sending people all documents with postage-paid envelopes so that they can send back the information that is required on the basis of incorrect decisions that have been made on their part. Those changes are achievable, deliverable and fair, and should be implemented without delay. That is the right thing to do in these circumstances.

When this exercise is complete and people have the opportunity to access justice, at no cost to themselves—neither should there be—we can then move our attention on to securing full, fair and proper compensation for all victims, some of whom have lost their jobs and homes as a result of this fiasco.