Concentrix

Stephen Doughty Excerpts

Wednesday 26th October 2016 Commons Chamber

[Jane Ellison]

The right hon. Gentleman is right to anticipate that I will touch on that issue. I will reflect on his point. I do not know about the arrangements for being proactive in telling people, but there are arrangements in place. When I get to that point, he can let me know if he does not think they are adequate.

Given that so many hon. Members on both sides of the House have made such efforts to support their constituents during recent weeks—the human aspects of this issue are absolutely uppermost in our mind today—I should bring the House up to date on the action taken to rectify the situation. As I informed the House last month, we decided on 13 September not to pass any new cases to Concentrix. Instead, it was intended that it should concentrate on resolving outstanding cases. HMRC staff stepped in to reinstate a quality customer service, such as making sure that people could once again get through on the phones. We know how critical it is for people to be able to get through and have their voice heard.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

On 14 September, when the Minister answered an urgent question in the House, she told all our constituents to phone the number they were given. One of my constituents phoned the line that day and waited for ages to get through, only to be told, “Because of all the complaints you’ve been making, we’re getting sacked”, and the phone was put down. Does she agree that that added further to the already deep distress that people were feeling, and that it is not acceptable?

[Jane Ellison]

Of course it is not acceptable—not at all. I would add that, as hon. Members may be aware, the opening hours of the MPs’ phone line have for some weeks been extended to cope with the larger number of calls coming through that route.

--- Later in debate ---

[Mhairi Black]

I want to make some progress.

It is such a farce that the Government and Concentrix cannot even agree on how many times they got it wrong. It is a ridiculous situation to find ourselves in. Meanwhile, people are having to go to food banks and to go home to their crying children, who do not want to eat Tesco’s 80p Bolognese for the fourth time that week.

I appreciate that mistakes can happen in all walks of life, whatever job one is in, but the reality is that, when the mistakes are made by Government, it is people who suffer—and often it is the most vulnerable people. Although we wholeheartedly support Labour’s motion, we have to highlight the fact that the Government have to bear some of the blame. The contract itself states that HMRC is required to monitor the exercise and remains responsible in law for the actions carried out by the contractor. I do not believe that the Government have done that adequately.

The most damning thing in this entire saga is that Concentrix was under the impression that its contract was going to be renewed. Only after the media cottoned on to this and began writing about it, and after 670-odd formal complaints were put in by elected Members to HMRC, did the heat begin to be turned up and the issue begin to be taken seriously. The vice-president of Concentrix said he was initially given only 15 minutes’ notice, before he went on a flight, that the contract was not going to be renewed. He pleaded with HMRC to be given an hour in order to inform staff. An hour was the difference between Concentrix thinking it had a contract that would be renewed and the contract being taken away because of its shambolic work. The level of incompetence is truly incredible. We cannot ignore that and place all the blame on Concentrix.

So what needs to be done now? The hon. Member for Greenwich and Woolwich (Matthew Pennycook), who is no longer in his place, mentioned the £100 hardship payment, but in all my cases constituents have been told that the £100 will be taken back off their benefits. That has to be looked at. If we are all being told that at the same time, that is clearly an issue.

As for how we should deal with the overall problem, the buck has to stop with HMRC. The Government must bring services of this kind back in house, and they must once again be the Government’s day-to-day responsibility. Saying to a private company “We want you to make £1 billion worth of cuts, but we will only pay you on a results basis” is a recipe for disaster. We have to legislate so that this is never allowed to happen again. One of the main reasons that it occurred in the first place was the lack of resources and Departments’ inability to cope. The Treasury must reconsider its ongoing policy of downsizing HMRC, especially when we are in the midst of such a cataclysmic problem.

As has been said by a number of Members today, and on another occasion by my good and hon. Friend the Member for Lanark and Hamilton East (Angela Crawley), the Government must apologise to people. There is no shame in apologising and admitting that you got it wrong. The Government need to regain a bit of trust from the people who have been hurt. Concentrix is by no means innocent of any of what has happened, but ultimately it was HMRC that signed the contract: it happened on HMRC’s watch.

Conservative Members will probably roll their eyes and stop listening when I say this, but the biggest problem that I have with issues like this is that the Government seem to be perpetuating an overarching culture of blaming the poor. We treat people with suspicion from the start, and the onus is always on individuals to prove that they are not thieves or frauds. Pressure is put on people who have enough to deal with already. I have sat through many debates of this kind, and I have heard certain groups—disabled people, pensioners and those on low wages—being constantly targeted. We end up pitting them against each other. We tell young people “You cannot get a job because pensioners are living too long”, and we tell the disabled “Sorry, we cannot afford to pay these amounts any more, so we will have to cut £30 from your benefits.” All the while, at the heart of all that, there is a small group of people who are wealthier than ever before—and I have to say that I include every elected Member in the Chamber in that category. We were all given an 11% pay rise; who else was? Who in the outside world has seen that kind of pay rise?

[Stephen Doughty]

Will the hon. Lady give way?

[Mhairi Black]

I am going to finish soon.

Recently, Philip Green gave evidence to the Work and Pensions Committee. Here is a guy who has lost £570 million worth of pensions, 22,000 pensioners have been affected and 11,000 jobs have gone, yet he is still able to go off to the Greek islands on his £100 million yacht. That is not the kind of society that many us want.

Let us not forget that, despite this whole saga and despite all the horrendous stories that we are hearing, Concentrix will still walk away with millions of pounds as a result of the work that it has already done: I believe that the most recent figure is £27 million. This is a culture for which the Government must be responsible. Although only 0.8% of benefits are fraudulently claimed, the general public seem to think that one third of them are. The Government have not just a responsibility to look after people, but a responsibility for the language that they use—for the rhetoric—and also for the culture that they set.

I know that what I am saying will probably not convince Conservative Members. This may be an unconventional suggestion, but I want them to go and see a film called “I, Daniel Blake”, which will give them a cold and sobering view of the reality that so many people are experiencing. The film rightly makes it clear that, when we debate matters such as this, we are not talking about service users, claimants, or national insurance numbers on a Concentrix computer screen; we are talking about citizens—your citizens. We are talking about people here, and they deserve to be treated with a lot more dignity and respect than they have been.

In her first statement as Prime Minister, Theresa May made this promise in Downing Street:

“If you’re from an ordinary working class family, life is much harder than many people in Westminster realise… When we take the big calls, we’ll think not of the powerful, but you. When we pass new laws, we’ll listen not to the mighty but to you. When it comes to taxes, we’ll prioritise not the wealthy, but you.”

My last question to the Government is “When?” There are people with absolutely nothing. When will the Government prioritise the people who need them most? Lord knows, those people are losing both patience and hope.

--- Later in debate ---

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I apologise for the state of my voice, but it is important that I speak in this debate on behalf of the many constituents who have contacted me about, and who are suffering as a result of, this scandalous Concentrix shambles. I commend the Opposition Front-Bench team for calling the debate, and particularly my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey) for her forensic analysis of what the Government could have got right when enforcing this contract and the problems that have led us to this point. I also commend my hon. Friend the Member for Sheffield, Heeley (Louise Haigh), who has done so much work to drive the debate forward. I also thank the staff in my office. We all have fantastic constituency staff who do so much to assist our constituents, and I particularly want to thank Shira, Lily and Ruba for the work they have done in dealing with a number of distressing cases involving individuals who have been in deep hardship and have been greatly upset. As my hon. Friend the Member for Stretford and Urmston (Kate Green) said, the people affected have often been single mothers. I also thank Citizens Advice and other local advice charities, which have been faced with a deluge of these cases.

I wish to reflect on a few of these cases. In one, a single mother had a long-standing claim suspended after Concentrix said that she was living with another named woman in her rented property. It was suggested that a third woman was also living at the property, but both were actually previous tenants of the home, one from as far back as 2010. The information had come from the electoral register, even though my constituent had lived in the property only since 2014. The claim was eventually reinstated. Another case involved a single mother and homeowner who had her claim suspended after Concentrix said that she was living with “a couple”. She is the sole owner of the property and had provided evidence to demonstrate that. Again, the claim was eventually reinstated.

The citizens advice bureau referred the case of another single mother to us. Her award was stopped pending an investigation. She was left with no income and we had to refer her to food banks, which is a deeply distressing experience for anyone. Her son is diabetic and requires a specialist diet, so that contributed to her stress and unhappiness. Again, that claim was eventually reinstated. A further case involved a single mother in work who had both her tax credit claims stopped after she was told by Concentrix that her half-brother, who had once sent post to the property, was in fact her partner. That case has not been resolved and she has been without money since August. I have two to four such cases, and I question some of the assurances that we have heard about how long it takes to resolve these cases. I have written to the Minister about a number of cases and we are contacting the helplines. I hope that she will assure us that she will fast-track some of these deeply distressing cases.

[Jane Ellison]

I am happy to give that assurance. Once again, I urge Members with particularly long-running and difficult cases to get in touch, and I will make sure that HMRC prioritises them.

[Stephen Doughty]

I thank the Minister for those comments, which will provide some reassurance. We will certainly follow up cases with her office.

All the cases have common themes, one of which is their impact on single mothers and families with complex needs, often including children with health problems. These people are suddenly being left without food and money. Individuals with mental health issues are facing additional stress and anxiety. People have contacted me in desperation, by every possible means. Often they had not realised that their MP was the person to go to, but I have been contacted on Twitter and on Facebook, and by email and by phone. These people have been through the agony and desperation of not being able to get through on the helplines and, in some cases, they have found that the phone has been put down on them, as I outlined earlier. Obviously that is completely unacceptable, and I am glad that the Minister recognises that.

We need to deal with the problem of the final responses that people receive. Those responses often do not explain why the claims were stopped or reinstated, leaving constituents unsure about whether the same thing will happen again, and they do not give an apology. I appreciate what the Minister has said today, but we need to apologise directly to the individuals and families who have been affected. I have talked about the long delays, but an inability to speak to someone directly about the situation creates frustration and distress. We have heard examples of people receiving contradictory and confusing correspondence, and that adds to the pressure and concern that they experience. We have had to refer many constituents to food banks, which causes deep distress to anybody who has to go through it. These people, through no fault of their own, have found themselves in that terrible situation at the end of these erroneous investigations.

[Sammy Wilson]

Does the hon. Gentleman accept that in many cases this has happened simply because, as the Minister indicated, Concentrix was following the processes, guidance and requirements of HMRC? The worrying thing is that if the situation does not change, it will not matter whether we change the contract between Concentrix and HMRC, as the same things will happen again.

[Stephen Doughty]

The hon. Gentleman makes an important point that shows why we need a full independent investigation into what has gone wrong. Such a situation applies not just to Concentrix. We can look at what has happened with Capita, with contracts such as that for Clearsprings asylum accommodation, and with Atos. There is a common theme across Government contracts whereby things are contracted out but then not properly monitored and followed up. The people who suffer in the end are some of the most vulnerable and the poorest. A common thread is that some of our constituents in the most difficult situations are affected, so the Government need to take a wholesale look at whether they should even be contracting out these sorts of services. When they should be, and there is a legitimate reason for doing so, the Government need to monitor and follow up what is going on, down to the level of the experience that individuals face. That is the real thing that matters in all this. These people often have extremely complex lives and face many pressures.

[Dr Philippa Whitford]

The hon. Gentleman mentions the problems with Atos and now we have Maximus. I know of a case of someone who has been waiting for a work capability assessment for almost six months. Can we not foresee that we will have a similar debate in another half year’s time?

[Stephen Doughty]

I would not be surprised if we were to have that debate. I am frustrated by the Clearsprings case. People can see companies making a huge profit out of these contracts, and individuals making hundreds of thousands and sometimes millions of pounds, as a result of providing the most shoddy and inappropriate services. People suffer, but these companies often get away without so much as a slap on the wrist, and often with payments at the end. When people look at this, and particularly at HMRC, they say, “We are being chased down for these relatively small sums, completely erroneously, through these fishing expeditions, but then we see sweetheart deals with major corporations over their non-payment of tax.” This is not just about tax credits. Small businesses in my constituency come to me with complex VAT cases and say, “It is one rule for those at the top and another for us.” They are often put into severe hardship and face deep complications as they try to resolve these cases. By the time people arrive at the doors of Members of Parliament, they are often in severe financial difficulties, be that as an individual or as a business.

I want to be absolutely assured that the Minister will not just hold a full investigation into this case and resolve the issues for individuals in my constituency and others that we have heard about today, but will raise in government the wider issue of the contracting out of such services and how they are monitored because, in the end, it is the people of this country who suffer. The situation is not acceptable. This has been an absolute disgrace and it has to stop.