Concentrix: Tax Credit Claimants

Debate between Paula Sherriff and Fiona Mactaggart

Tuesday 18th October 2016 Westminster Hall

[Fiona Mactaggart]

The hon. Gentleman is right that we should stop such contracts, but we also need to find out the extent to which there has been a failure of policy underlying the Concentrix contract. I agree that the very nature of the contract—having a private company asking for those details—was inappropriate. So was the payment-by-results aspect, for example, and the fact that when the company was under pressure there was no way of bringing in civil servants to help by answering the telephone and so on. Such problems are inherent in that kind of contract, but some of the difficulties must have been created by the way the Treasury and HMRC operated. They provided the company with totally flimsy evidence and suggested it should be investigated. In effect, they ran a campaign against parents who were doing the terribly difficult job of bringing children up on their own. We should be ashamed of ourselves for targeting that group of people, who are resilient but in some ways vulnerable. The job of broader society is to help them in their task of bringing up the next generation.

Many claimants received a letter requiring council tax records, a year’s worth of bank statements, pay slips, childcare costs, divorce papers and household bills. Many people, as I would have done, treated such requests from a private company as probably a phishing exercise by a fraudster. Those people discovered within 30 days that their conclusion was an expensive mistake: their tax credits were stopped. All my constituents who had their tax credits stopped eventually had them restored.

I stress that it happened eventually. It was often after hours on the telephone and the intervention of my staff. Those hours on mobile phones cost an enormous amount for some of these people, who at the time had no money to speak of apart from the meagre wages they earned from their part-time jobs.

[Paula Sherriff (Dewsbury) (Lab)]

I thank my right hon. Friend for securing this important debate. My constituent’s tax credits were stopped erroneously. She was down to her last £5 and was told to send in documents by recorded delivery. She had to decide whether to feed her children or send the documents. The Government really must rethink their policy and respond to such people, so that we know it will never happen again.

[Fiona Mactaggart]

The problem is that the Minister and his civil servants cannot imagine what it is like for someone to have to choose between feeding their son or daughter and posting an important letter that will get next month’s money in. They cannot imagine a parent having so little money that that is the choice they face. When people’s tax credits were stopped, they were eventually restored. Although they can get additional bank charges and so on paid back—I have managed that on behalf of constituents—they often cannot redeem their credit history, which makes the rest of their life more expensive, so there are serious long-term consequences.