Concentrix: Tax Credit Claimants

Melanie Onn Excerpts

Tuesday 18th October 2016 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Nuttall. I congratulate the right hon. Member for Slough (Fiona Mactaggart) on securing this debate, and I congratulate all the Members here who have demonstrated real compassion and understanding on this matter. The Minister might not have been on the other side of phone calls from constituents, but it is worth making the point that people who phone our constituency offices are at desperation point—at their wits’ end. Indeed, our constituency office staff are finding it extremely difficult to deal with people in dire need of help. I hope the Minister will take that into account when considering my further points.

We have all faced a number of these cases. On 14 September, I asked the Financial Secretary to the Treasury what the turnaround time would be for dealing with cases, and I was told four working days. On 29 September, in a phone conversation with HMRC, we were told it would be two to three weeks before cases were looked at. On 4 October, I was told the four-day period had been dispensed with. That is not good enough. I have a constituent who set up a food bank, but who is now a customer of that food bank. I know of a mother who cannot afford childcare and had to resign from her job, a mother who cannot afford lunch money to send her children to school with, and a mother who had to sign herself out of hospital after a suspected heart attack to deal with the issue. These are really serious matters, so I have a list of suggestions that the Minister might take on board so that these people can achieve justice immediately.

HMRC should provide a free phone line for people to use. It is ridiculous that people spend between 8p and 10p a minute to speak to HMRC and hold on for hours. On hardship payments, I understand that HMRC will call people, but they get two call-back chances. If HMRC does not get someone in those two phone calls, they will not get the hardship payment. When people have a small sum of money, and have to decide whether to feed the children, or top up or reconnect the phone, what do people do? They do what we expect them to do: they feed their children. Such situations must come to an end.

The call-back service that is provided should be there for people to use. People could leave a voicemail or press a button in order to get a guaranteed call back from HMRC. Our constituents should not be chasing HMRC for money that is rightfully theirs. It is not their error.

On the posting of documents, HMRC should distribute postage-paid envelopes to our constituents, so that they bear no cost when sending documents back to HMRC to have cases processed. On the contract that has been cancelled, of course that is welcome, but I want to look further into that contract. Did it reach its natural conclusion? Did the Government simply decide not to renew? What compensation is available to our constituents for the situation in which they find themselves as a result of a contract that has not served the Government well?

[Melanie Onn (Great Grimsby) (Lab)]

My understanding is that the maximum compensation is £100, which is a paltry amount when people have been plunged into debt and uncertainty.

[Ms Ahmed-Sheikh]

I agree. On the £100 payment, there is a lot of haziness around it. Some of my constituents have not taken up the payment because there is no clarity around whether it is repayable or not. Again, that has to be dealt with. As I have said, if someone does not receive the phone call offering them £100, they do not get it, so if someone does not have a phone because they choose food over contact with HMRC, they do not get anything.

We do not have much time and I want to give time to the Minister to answer these important questions. Apart from the suggestions that I made on what HMRC should immediately do, these are my key questions for the Treasury: what is the latest guidance given by HMRC bosses to call handlers on how long a person can wait for the tax credit payments to be restarted? How many cases have been resolved, and how many are outstanding? On the impact on victims, what estimate have the Government made of the average cost to each customer in lost payments? What assistance is there to help claimants meet the costs of requesting a mandatory reconsideration?

What are the criteria for offering emergency interim payments? Are all victims eligible, or only those whose cases have been highlighted through the MP hotline? Why has the existence of those payments not been publicised? It is not in the wider public domain. How many victims satisfy the criteria, and how many have been offered the payment?

Why did the contract between HMRC and Concentrix incentivise the company to cancel tax credit payments? What a disgrace! Of course that is a conflict of interest, as suggested by the independent Social Security Advisory Committee in July. Why was the contract so badly managed? Will the work be brought back in-house following the end of the contract, or will a new external contractor be sought? Please will a Minister do the right thing by our constituents and give them the money that they need, and rightfully deserve?

--- Later in debate ---

[Peter Dowd]

The hon. Gentleman makes a fair point that needs to be looked at.

When all is said and done, this is a question of the performance management of a Government contractor, and a clear lack of oversight by the Government. On behalf of the many people affected by the debacle, I would like to performance-manage the Minister by asking the following questions. First, who was overseeing Concentrix’s contract? Secondly, how was the oversight conducted? Thirdly, how often was it reviewed? Fourthly, what were the penalties for mismanagement of the contract? Fifthly, when did the penalties kick in? Sixthly, what penalties are left on the contract? Seventhly, will Concentrix be paying back any money to the Government? Eighthly, how many people have been affected? Ninthly, what actions have the Government taken proactively to compensate those people? Tenthly, have the Government sent out formal apologies to those affected? And finally, when will the last person who has had their child tax credit withdrawn receive repayment? Those key questions need to be answered and acted on. We do not want any shilly-shallying from the Government.

[Melanie Onn]

Would my hon. Friend add two further questions: whether Concentrix has applied for any more contracts in the last month, and whether it will be prevented from bidding for any future contracts with this Government?

[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.