HMRC’s contract with Concentrix Contents

Introduction

In 2013, HM Revenue & Customs (HMRC) set a target to reduce error and fraud in personal tax credits to no more than 5.5% by 2014–15. To help meet its target, in May 2014 HMRC signed a three-year contract with Concentrix. The contract aimed to provide additional capacity and analysis to check for possible error and fraud in tax credits. Concentrix contacted tax credits claimants, collected and assessed evidence and made changes to their tax credits entitlement. HMRC retained overall responsibility for the tax credits system, including stopping payment if a claimant did not renew their claim by the annual deadline of 31 July. HMRC assured us, in July 2016, that it had succeeded in bringing Concentrix’s service to an acceptable level but, in August 2016, instances of poor customer service and decision-making were widely reported. In November 2016, HMRC and Concentrix agreed to end the contract as it was not meeting the customer service standards or savings that HMRC had intended. In December 2016, the Work and Pensions Committee reported on the Concentrix contract, highlighting that vulnerable people had lost benefits to which they were entitled as a consequence of avoidable failures.





4 April 2017