Concentrix: Tax Credit Claimants Debate

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Department: HM Treasury

Concentrix: Tax Credit Claimants

Patricia Gibson Excerpts
Tuesday 18th October 2016

(8 years, 2 months ago)

Westminster Hall
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Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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Like other Members in the Chamber, I am all too aware of the significant number of people caused great hardship by the withdrawal of tax credit payments. Many of them are in my constituency of North Ayrshire and Arran. Some of my constituents have had payments stopped because the claimant has been incorrectly accused of sharing a home with a non-existent partner. Tax credits have been suddenly and unexpectedly withdrawn, with the claimant even having difficulty in securing any kind of explanation, however misguided and mistaken that explanation turns out to be. Claimants are on the phone for hours over weeks and weeks, and are caught up in a grotesque bureaucratic nightmare. The system seems to mock their hardship, leaving them to rely on food banks.

There can be no doubt that the system is a mess. Concentrix’s indiscriminate and groundless accusations of fraud directed at low and middle-income families is completely unacceptable, and cause huge emotional distress, financial hardship and utter despair. Now we know from reports that Concentrix’s misconduct could be in breach of the Data Protection Act, since claimants’ details have been known to have been sent to the wrong address. The allegations are extremely serious and must be fully investigated by both Concentrix and HMRC. Outstanding cases must be dealt with urgently. Only then will the hardship caused end. I urge the Minister to indicate how and by when that will happen. Concentrix’s contract expires in May 2017, but the suffering continues right now. Urgent action is needed to protect claimants from this appalling situation.

--- Later in debate ---
Simon Kirby Portrait Simon Kirby
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I will not give way.

Thirdly, anyone who does not agree with Concentrix’s decision has a right to ask for a review called a mandatory reconsideration. HMRC has allocated its own staff to carry out such reviews within 21 days of the request. It is a large organisation with flexible staffing, so it is able to deal with peaks and troughs of demand. The hon. Member for Aberavon (Stephen Kinnock) mentioned the issue of extra costs, but I am confident that there will not be any.

Patricia Gibson Portrait Patricia Gibson
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Given the extra work being created for HMRC to clean up the mess created by Concentrix, does the Minister have any view on the fact that one third of HMRC staff will be cut by 2021?