Gerald Jones MP

Putting Merthyr Tydfil and Rhymney at the Heart of Parliament

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An update to my constituents concerned with Concentrix and the Tax Credit system

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Dear Constituents,

There are a growing number of media reports alleging that Concentrix is unfairly and unjustly stopping Tax Credits. Indeed, I, like many other MPs, are being increasingly approached by anxious constituents with worries over Concentrix’s contract with the HMRC to supposedly “correct” tax credit claims.

Last year, as you will be aware, Labour forced a Government u-turn on proposed cuts to Tax Credits.  We refused to allow working people to be targeted in such a despicable manner. 

Now, only a few weeks after cutting Corporation Tax and Capital Gains Tax, the Tories are being exposed AGAIN for targeting hard working families.

Labour MPs have therefore been seeking assurances and clarifications about this issue from the Government for some time. Alarmingly, according to the Government, SYNNEX-Concentrix have considered around 667,000 cases of which around 103,000 cases have been amended. Further, Concentrix has failed to meet its agreed performance standards 120 times in just under a year.

Whilst Labour welcome that the HMRC has finally taken action in announcing that the Concentrix contract will not be renewed, it’s regrettable that they can only reach such a decision when the contract has been dramatically exposed by the media.

There are serious questions about the administration of the child tax credit system in general, and by Concentrix in particular. Labour MPs are very concerned as to whether Concentrix’s activity is being properly monitored and scrutinised; and alarmed that the profit incentive could reduce the ability of the contracted out organisation and its staff to be impartial when reconsidering decisions.

This is clearly an issue of importance to the public finances and raises questions as to the value for money for the tax-payer. We need urgent clarification that HMRC are fulfilling their obligations to the British public.

My front bench colleague, Rebecca Long Bailey MP has written to the Chancellor demanding answers and Labour is planning to use all the parliamentary mechanisms available to raise concerns in this regard – including host an Opposition Day Debate in October 2016.

Labour will not allow the Tories to make the working people of Merthyr Tydfil and Rhymney pay for tax breaks for the wealthy. We are calling for an urgent investigation in to Concentrix’s activities.

If you think you may have been affected by the issues raised above, please get in touch with my office on 01685383739 or by emailing Gerald.jones.mp@parliament.uk and we may be able to help

 

Yours sincerely, 

Gerald Jones MP

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