Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether (a) targets and (b) financial rewards formed part of HM Revenue and Customs' contract with Concentrix for its processing of claims for tax credits.

The construct of the contract between HM Revenue and Customs (HMRC) and Concentrix has been published, and is available at: https://www.contractsfinder.service.gov.uk/Notice/85d1b730-5e4e-4be8-ae4c-3ac1f359afc7?p=@QxUlRRPT0=NjJNT08=UF

The contract was predicated on Concentrix undertaking interventions with regard to potential error and fraud in relation to the tax credits system. With regard to targets, the contract provided for specific activity to be completed by Concentrix in undertaking error and fraud intervention activity.

The contract also provided for specific targets in terms of dedicated quality, key and standard performance indicators which were connected, where appropriate, to a performance management regime (for example, with payment to Concentrix being reduced accordingly should pre-agreed levels of performance not be met).

With regard to financial rewards, payment to Concentrix was based on an established commission rate and linked to gross losses prevented by them in undertaking dedicated error and fraud intervention activity.