A taxing issue
Town MPS unite over tax credit future
Hamilton politicians have welcomed the UK government’s decision not to renew a Tax Credit compliance contract with controversial US firm Concentrix.
The company landed a £75 million deal to try and save the government more than £1 billion in incorrect or fraudulent tax credit payments in May 2015.
However, it was subsequently accused of incorrectly cutting tax credits from hundreds of claimants, with The Treasury confirming that in 120 cases since last October, the company did not “fully” meet the performance standards laid out in its contract.
In recent weeks, the firm has been in the spotlight again as MPS across the country have received an influx of constituent cases following a wave of new Tax Credit suspensions issued by the company.
Rutherglen and Hamilton West Margaret Ferrier MP said: “It is incredibly welcome that the Tax Credit fraud and overpayment contract will not be renewed with Concentrix, but questions must be answered about UK government incompetence on the matter.
“How much of the so-called ‘savings’ attributed to Concentrix were as a result of false accusations against Tax Credit recipients? The cost of the Concentrix contract is reported to be £75 million – how much of that will be clawed back to directly compensate those affected?
“There are reports that civil servants have now been drafted in to clean up this mess – and this will also have a cost. The taxpayer has an absolute right to know how we got into this situation and what plans the UK government has to sort it out.
“I have fought a number of Concentrix cases for constituents, in order to have their Tax Credits rightfully reinstated. If any constituents have had their Tax Credits stopped recently, and they feel it has been wrongful, then I would ask that they please contact me.”
Lanark and Hamilton East MP Angela Crawley also welcomed the decision.
In a Westminster Hall debate in Parliament, Ms Crawley spoke of the apparent “phishing” exercises carried out by Concentrix on behalf of the Department of Work and Pensions (DWP) – a series of blanket letters accusing benefits claimants of breaking rules on cohabitation.
Ms Crawley asserted that these accusations were baseless and called out both Concentrix and the DWP for ignoring requests for further information since last year.
She said: “I have had a number constituents contact me as a result of of Concentrix wrongly accusing them of tax credit fraud, so it is welcome that the contract will not be renewed with Concentrix.
“However, it not acceptable for this to simply be the end of the matter. Concentrix have put thousands of single parents across the country through months of stress and anxiety.
“I had constituents without tax credits for six weeks over Christmas, only for the fraud case to be cleared.
“Since November last year I have written to the DWP and Concentrix on behalf of several constituents, and not once have I received an explanation as to what evidence these accusations were based on. The UK Government should launch a full investigation into Concentrix’s practices, so not to repeat their failures the future.”
A spokesperson for Concentrix said: “We have operated professionally at all times and within the guidance set by HMRC.
“The HMRC statement not to renew the contract attacks our professional credibility, and the commitment of our staff who have performed determinedly, despite the issues with HMRC policies and procedures.”