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Contract for checking tax credits entitlement not to be extended

HM Revenue and Customs (HMRC) has confirmed today that it has decided not to extend its existing contract with Concentrix, a company it employs to check tax credits entitlement.

Both organisations will now be focused on clearing the outstanding cases. HMRC is redeploying 150 staff to help with this work.

HMRC’s 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.”

Notes to Editors

1) The contract runs to May 2017, and provided additional capacity to check tax credits claims to ensure that claimants are paid the right amount to avoid building up a debt which might be difficult to repay later and putting an unfair cost on the taxpayer.

2) If the customer provides further information to show they were entitled to tax credits they will have their money backdated for any period where payments were stopped.

3) Throughout the contract HMRC monitored performance and customer service issues on a daily basis to ensure they met the contractual requirements.

4) Where performance was below the levels expected, HMRC asked Concentrix for plans to improve performance.

5) The contract value is £55 - £75 million over three years on a payment by results basis.

6) So far this contract has secured £280 million of savings for the taxpayer.

7) Payments to Concentrix are based on the quality and accuracy of their work. They will not be paid if the decisions they make about claimants’ awards are wrong or where they have not met minimum service levels.

8) HMRC has reduced error and fraud in the tax credits system so that it remains on target and at a near record low since tax credits were introduced in 2003.

9) Follow HMRC’s Press Office on Twitter @HMRCpressoffice

10) HMRC’s Flickr channel www.flickr.com/hmrcgovuk

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HM Revenue & Customs (HMRC) is the UK’s tax authority

HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.

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