Local MP backs HMRC decision to dump Concentrix

HMRC last week announced that they would not be renewing their contract with Concentrix, the American firm tasked with cutting tax credit fraud. The announcement came after it was revealed the firm had incorrectly withdrawn tax credits from hundreds of claimants.

The Shadow Chief Secretary to the Treasury asked an urgent question in Parliament on Wednesday regarding Concentrix’s activities. Despite cutting ties with Concentrix, the Treasury is however refusing to hold an inquiry into the failings of Concentrix.

Mark Tami supports HMRC’s decision not to renew the contract but feels an official investigation should have taken place.

He said. “I have been contacted by a number distressed and anxious constituents who have had their tax credits cut unfairly, in many cases pushing them into extreme hardship.

“I welcome HMRC’s decision this week, however it should not have taken media publicity and pressure from the Opposition to force the Government to act.

“I really think an inquiry should have taken place. The Shadow Chief Secretary to the Treasury rightly pressed the Government to commit to an official investigation and I was disappointed that the Government refused to hold an inquiry.”

Concentrix will continue to work on behalf of the HMRC until the current contract expires in May next year.