American company Concentrix has been dropped by the Government after wrongly cutting tax credits to thousands of low paid families. Solidarity has received complaints from hard-up working families who were struggling with increasing debt, fines for missed payments and fighting off bailiffs and court demands after having their money unfairly stopped without warning.
We therefore welcome the decision of the HMRC not to renew the contract of American company Concentrix when it comes up in May 2017.
A series of high-profile cases have hit the national headlines including a teenage mother who complained her payments had been cut after she was wrongly said to have been married to a 74-year-old man who was dead.
The Treasury has revealed 120 cases since last October where Concentrix did not "fully" meet the performance standards laid out in its contract.
But it is feared the actual number may be higher. The Facebook campaign group Concentrix Mums, which has 5,600 members, says hundreds more people have been affected by errors.
The HMRC has now assigned 150 extra staff to clearing up the mess and sorting out remaining cases.
HMRC chief executive Jon Thompson said: “We want to reassure customers who have had their tax credits stopped that we will prioritise their cases, and make sure that they are processed as quickly as possible.
“While it’s right that we ensure that tax credits customers only receive the money to which they’re entitled, it is vital that those customers have a high level of service.
“That’s why we have decided not to extend our contract with Concentrix and HMRC is redeploying 150 staff so that customers can get through to advisers and resolve any issues about their claim.”