Newcastle North MP, Catherine McKinnell, has hit out at the treatment of local tax credits claimants by the outsourcing firm Concentrix, during a debate on its performance in Westminster Hall this morning.
Concentrix was awarded a contract in May 2014 by HM Revenue & Customs (HMRC) aimed at ‘providing additional capacity to review and correct tax credit claims that are potentially based on incorrect information’. A significant amount of the firm’s activity has focussed on ‘undisclosed partner’ investigations – inquiries into whether a person claiming tax credits as a single person is actually living with someone.
Following huge concern about the way in which people receiving tax credits have been treated by the firm, the Government announced on 14th September that Concentrix’s contract would not be renewed when it expires in May 2017 as its performance ‘has not been acceptable’.
During this morning’s debate, MPs from across the country spoke of how their constituents’ tax credit payments had been suspended with little – or no – notice, and usually on the basis of totally incorrect information which was often difficult for constituents to disprove; and how they have had to fight for many weeks to have their tax credits reinstated, leaving them in serious financial difficulty.
Speaking during the debate, Catherine said:
‘I congratulate my right hon. Friend on securing this debate. She is absolutely right that we need to learn the lessons from this mess.
‘Many of my constituents have been left in utter financial disarray by having been left for a time with no income….
‘…We need reassurances from the Minister that the Government will take every step necessary to sort out this shambles, and help those who have been left in a mess.’
Catherine also raised concerns about the impact of Concentrix’s activities on families, commenting:
‘The majority of constituents who have been in touch with me are single mothers, but single fathers have also been affected.
‘One constituent who came to me looks after two children and works 16 hours a week – and he received no money for six weeks. Ultimately, it is the children in those households who suffer.
‘The Government must ensure that this does not happen again.’
And speaking after the debate today, Catherine said:
‘This debacle has had a devastating effect on far too many families across Newcastle North, most of whom are in low paid work and doing their best to support their children.
‘The very last thing they needed was to have this vital support taken away, with no notice, and for no good reason – and then to have to fight for weeks to get their tax credits back.
‘But, thousands of families are still caught up in this process. The Government really must get a grip of this situation and ensure that tax credits payments are reinstated to those eligible as a matter of urgency.