Justin Madders MP has welcomed the decision not to renew a contract awarded to the company Concentrix, which was used by the government to oversee part of the tax credit process.
The US firm was brought in by the Government as part of a controversial attempt to cut tax credit fraud and overpayment, but hundreds of harrowing cases of mistakes and incompetence soon emerged, prompting calls from Labour for the government to scrap the contract.
This week, HMRC admitted that 6,000 people had had their credits wrongly stopped by Concentrix in the past six months and that 64% of complaints have been upheld. It was revealed through Parliamentary Questions that Concentrix have breached their performance standards on no fewer than 120 instances since October 2015 alone (the contract has been running since May 2014).
In Ellesmere Port & Neston, many local families contacted local MP, Justin Madders in desperation after having their Tax Credits suddenly stopped, in some cases leaving them unable to put food on the table.
Commenting, Justin said:
“This news can’t come soon enough for the thousands of families across the country who have been put through misery and distress by this disgraceful contract.
“I have been contacted by many families who have found themselves in dire straits because a private company has stopped their tax credits without any warning or notification.
“I’m extremely disappointed that the Treasury has refused to hold an Inquiry to look at what went wrong here. But this is far from the first time that they’ve wasted millions of pounds on outsourced projects which have both failed to deliver the savings promised and caused misery to thousands in the process.
“It’s time that the government stopped spending our money paying disastrous third party companies to do jobs that could be done more fairly and effectively in house.”