Speeches

Clive Lewis – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Clive Lewis on 2015-12-16.

To ask Mr Chancellor of the Exchequer, on what grounds it was decided that compliance checks for tax credit applications would be outsourced to Concentrix.

Mr David Gauke

Reducing tax credits fraud and error is a top priority for HM Revenue and Customs (HMRC). The contract with Concentrix offers additional capacity to help build on HMRC’s own work, which has reduced tax credits fraud and error to the lowest ever level. Using a private company provides a cost-effective way to reach additional claims that need checking.

The checks are to ensure that people are paid the correct amount of money to prevent them from getting into debt which they may find difficult to repay and protect losses to taxpayers.

Concentrix operate under the same powers and processes as HMRC. Concentrix select cases to be checked using information provided by HMRC. Concentrix decide how best to achieve the expected benefits, including the number and type of cases and number of staff employed. HMRC closely monitors their performance.

The contract uses a payment by results model, which means Concentrix is only paid based on the money it saves the Exchequer as a result of correcting claims that are incorrect. They will not be paid if the decisions they make about claimants’ awards are incorrect.

The contract was signed on 6 May 2014. The contract was awarded to Synnex-Concentrix UK Ltd in April 2014, following a procurement exercise advertised under the open procedure. Information about the contract value and contract award is already in the public domain.

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