Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how HMRC will demonstrate value for money on the long term rollout of the Managed Service provider model.

This question was answered on 13th April 2026
Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce.

Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.

Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m.

HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics.

HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.