Concentrix: Tax Credit Claimants Debate

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Department: HM Treasury

Concentrix: Tax Credit Claimants

Mark Durkan Excerpts
Tuesday 18th October 2016

(8 years, 2 months ago)

Westminster Hall
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Mark Durkan Portrait Mark Durkan (Foyle) (SDLP)
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I share Members’ frustrations about dealing with Concentrix in the constituency cases that come to us, but our frustration is nothing compared to the distress and desperation caused to many constituents. Let us be clear: as the right hon. Member for Slough (Fiona Mactaggart) indicated, we need to look closer to Parliament when asking some of our questions. The fact is that the contract was conceived by HMRC in a spirit of suspicion and hostility towards its customers. It said that it wanted to handle the high-risk renewal cases in this way, and it intimated to Concentrix that it was disappointed that Concentrix had screened out 80% of the cases referred to it as likely to be high risk and did not pursue them further. Perhaps that is one of the reasons why HMRC is taking the contract back. It perhaps feels that it could make a hotter and heavier pursuit than even Concentrix could.

The right hon. Lady also touched on the significant spike in August, when even more calls to Concentrix were waiting and even more call queues could not be dealt with. That came from HMRC’s direct move to remove 45,000 people from tax credits. Some of those people were supposedly under investigation by Concentrix as high-risk renewals, but HMRC moved against them because of the annual declaration process. We have two separate processes going on, and the one thing in common is the victim: the claimant. Did Ministers know that HMRC was striking off people when they were going through the high-risk renewal claim?

The other issue I want the Minister to address is the law. The right hon. Lady raised the question of the burden of proof, but Concentrix insists that HMRC is saying that the 30-day cut-off on non-compliance is absolute and in statute. Do we need to change that law?

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Simon Kirby Portrait Simon Kirby
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None of us in this Chamber wants anyone not to receive money that they are entitled to, especially if they are parents with young, vulnerable children. It is up to all of us to help our constituents and ensure we once again provide a fast and efficient service to everyone.

Let me turn to some of the issues that were raised. I do not have a lot of time, so hon. Members will have to bear with me. I acknowledge the points made by many hon. Members about the contract. HMRC will be undertaking a lessons-learned exercise, and it will share those lessons across the Government. It is clear that they will help to inform other contracts in the future.

Mark Durkan Portrait Mark Durkan
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In that lessons-learned exercise, will HMRC look at the question of the so-called high-risk renewal scheme, which is at the very heart of all the troubles that our constituents have suffered?

Simon Kirby Portrait Simon Kirby
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There will be a number of reviews, and all lessons learned will be looked at in an open-minded manner. We will consider all elements of what has gone wrong and try to ensure that the mistakes, which have clearly happened, are not repeated.

I have talked about how the data are given to Concentrix. It is up to Concentrix to choose who to contact from those data. The £100 hardship payment is important. It is available to everyone, not just through the MPs’ hotline. It is not necessarily a one-off payment; future payments can be made if there is a delay in the decision. I encourage people in hardship to apply for it, because it is there to help people while we sort out this mess.

The hon. Member for Foyle (Mark Durkan) talked about the 30-day cut-off period. I can tell him that most customers have been able to provide the information required within 30 days. There was a question about money being clawed back from Concentrix. Concentrix is not paid for wrong decisions, and payment is reduced where it fails to meet performance standards. That is still happening. At the end of the day, it is paid to do a job, and if it does not do the job, it is not paid for it. I have noted the comments about letters being lost.

In conclusion, I thank everyone here. This has been a short debate, and it would have been nice to have more time for contributions. I am here to listen, and I have listened very carefully.