15/09/2016

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:00:22. > :00:28.Urgent question, Rebecca Long Bailey.

:00:29. > :00:36.I asked the Chancellor of the Exchequer if he will make

:00:37. > :00:39.a statement on the abilities and activities in relation to tax

:00:40. > :00:44.credit investigations made on behalf of HMRC into Concentrix.

:00:45. > :00:48.The government recognises the importance of tax credits

:00:49. > :00:54.We all recognise that it is important that this support reaches

:00:55. > :01:09.That is why HMRC work hard to check that they are making the correct

:01:10. > :01:11.payments and to tackle any fraudulent claims.

:01:12. > :01:17.We must acknowledge that fraud exists in the system and should

:01:18. > :01:20.be investigated to ensure that taxpayers' money is spent directly.

:01:21. > :01:23.As part of this, Concentrix Ltd was engaged to help

:01:24. > :01:26.As a result, ?300 million worth of incorrect payments

:01:27. > :01:32.I do want to reassure the House on two key points.

:01:33. > :01:34.Firstly, Concentrix were only paid for making the right decisions.

:01:35. > :01:37.They would not receive payment for taking someone's

:01:38. > :01:40.And secondly, that Concentrix were not allowed to engage

:01:41. > :01:44.in fishing expeditions or pick on vulnerable claimants at random.

:01:45. > :01:49.But where there was evidence to suggest a claim might not be

:01:50. > :01:58.correct, Concentrix wrote to claimants

:01:59. > :02:00.to see information to confirm their eligibility.

:02:01. > :02:03.I realise, and I know this as a constituency member myself,

:02:04. > :02:06.that it can be stressful for someone to receive such a letter,

:02:07. > :02:09.but it is right that we investigate the full picture with claimants

:02:10. > :02:11.themselves to make the right payments.

:02:12. > :02:15.That is why both Concentrix and HMRC, where it does the same

:02:16. > :02:18.work, always sends a letter giving claimants 30 days to provide

:02:19. > :02:20.information before taking any further action and it is important

:02:21. > :02:23.that people do indeed respond and get in touch

:02:24. > :02:26.if they are struggling to respond to any other questions.

:02:27. > :02:28.Despite the best efforts of the staff manning the phones,

:02:29. > :02:32.with a high volume of calls in recent weeks, Concentrix have not

:02:33. > :02:35.been providing the high levels of customer service that the public

:02:36. > :02:38.expect, and which are required in their contract.

:02:39. > :02:41.HMRC has given notice that this contract will not be renewed

:02:42. > :02:47.HMRC is also no longer passing new cases to Concentrix but working

:02:48. > :02:51.with them, as a matter of urgency, to improve the service they provide

:02:52. > :02:54.to claimants and to resolve outstanding cases.

:02:55. > :02:57.I can confirm to the House that 150 HMRC staff have been redeployed

:02:58. > :03:03.with immediate effect to help them resolve any issues people

:03:04. > :03:08.are having with their claims, as quickly as possible,

:03:09. > :03:11.and Mr Speaker, I realise that colleagues on all sides of the House

:03:12. > :03:14.are concerned to get difficult cases resolved and assist vulnerable

:03:15. > :03:30.In addition to the additional resources I have already referred

:03:31. > :03:34.to, I have arranged a members' drop in in at 1 Parliament Street

:03:35. > :03:36.between 9:30am and 11am tomorrow at which we can

:03:37. > :03:38.offer guidance to colleagues, should that be helpful.

:03:39. > :03:43.Many members across the House have been contacted by distressed

:03:44. > :03:45.and anxious constituents, often hard-working individuals

:03:46. > :03:47.who have had their tax credits cut unfairly,

:03:48. > :03:50.pushing them, in many cases, into extreme hardship.

:03:51. > :03:54.Whilst we on this side certainly welcome that HMRC is finally taking

:03:55. > :03:59.action in announcing that the Concentrix contract

:04:00. > :04:01.will not be renewed, it's most regrettable

:04:02. > :04:09.that the government has only done this when events have been

:04:10. > :04:12.dramatically exposed by the media, and indeed My Honourable Friends,

:04:13. > :04:17.the member for Sheffield Healy and Birkenhead.

:04:18. > :04:20.Whilst Concentrix will be carrying out the services for another

:04:21. > :04:24.eight months, there's a risk that without radical amendment

:04:25. > :04:26.to the contract itself, service failures will continue.

:04:27. > :04:30.Most concerning is that the payment model creates a conflict of interest

:04:31. > :04:33.as noted by the Social Security Advisory Committee.

:04:34. > :04:35.Can the Minister confirm what arrangement she will make

:04:36. > :04:37.to urgently revise the contract to preserve justice

:04:38. > :04:43.Furthermore, as she stated, I understand HMRC will redeploy 150

:04:44. > :04:46.staff so that claimants can get through to advisers

:04:47. > :04:55.Can the Minister confirm how the government will monitor

:04:56. > :04:57.this going forward, and will the government commit

:04:58. > :05:00.to an official investigation into Concentrix's conduct

:05:01. > :05:08.since being awarded a contract in 2014, so that we can determine

:05:09. > :05:10.how this situation was allowed to arise?

:05:11. > :05:15.And one final point, Mr Speaker.

:05:16. > :05:17.Has the minister given any consideration to the real prospect

:05:18. > :05:26.of bringing this service back in-house?

:05:27. > :05:29.Mr Speaker, it is worth making the comment I think,

:05:30. > :05:32.that this is a very complicated system

:05:33. > :05:34.that this government, the previous government,

:05:35. > :05:37.indeed inherited, and it is the case that long-term, the right answer

:05:38. > :05:40.is to replace tax credits, as is our intention,

:05:41. > :05:46.because it is an unnecessarily complex system that

:05:47. > :05:52.But we must make it work whilst it is in operation and that is now

:05:53. > :05:56.With regard to the contract and the decision that HMRC have

:05:57. > :05:58.taken, I want to reassure the House that

:05:59. > :06:01.monitoring has been taking place on a regular basis throughout

:06:02. > :06:08.the contract, and HMRC have worked closely with Concentrix,

:06:09. > :06:12.but it is the case that as is documented in recent weeks

:06:13. > :06:15.that performance has not been right, and clearly, that has been something

:06:16. > :06:18.that we have noted and which we are now taking action on.

:06:19. > :06:21.With regard to the contract going forward, as I think

:06:22. > :06:30.I mentioned in my statement, Concentrix will be focusing

:06:31. > :06:34.on resolving outstanding claims, not opening new ones.

:06:35. > :06:38.In other words, the ones that they are already open,

:06:39. > :06:41.we'll be looking to deal with in an orderly and appropriate

:06:42. > :06:43.manner, and HMRC is putting in additional resources,

:06:44. > :06:46.focusing on those difficult cases where we have heard some

:06:47. > :06:49.high-profile examples in recent days, and to make sure that we get

:06:50. > :06:53.those resolved in the quickest possible time, to ensure that

:06:54. > :06:56.vulnerable constituents of all of ours are helped and supported.

:06:57. > :07:02.I don't think there is any need to go into inquiries etc.

:07:03. > :07:11.It is monitored on a regular basis, it is not going to be renewed

:07:12. > :07:14.when it ends in May next year, and the focus, I think,

:07:15. > :07:18.for all of us, and for me and for HMRC in the coming days

:07:19. > :07:21.and weeks, is in making sure that we get the outstanding

:07:22. > :07:23.cases and resolve them, particularly those involving

:07:24. > :07:26.the most vulnerable, and we make sure that people

:07:27. > :07:45.have the money to which they are correctly entitled.

:07:46. > :07:56.Cases women who have had their benefits withdrawn because the of

:07:57. > :08:15.men they are living with. What we need to know is how quickly these

:08:16. > :08:20.cases can be reviewed. I understand the point my right honourable friend

:08:21. > :08:27.makes. The courage people to call the HMRC it number they have

:08:28. > :08:31.received. We are putting people with immediate effect on to that hotline

:08:32. > :08:40.to ensure that we can resolve that. I had been talking consistently on

:08:41. > :08:44.this fact, that as soon as we can resolve the facts of the case, we

:08:45. > :08:56.will get money into people 's accounts in a matter of days.

:08:57. > :08:59.Whilst we on this side certainly welcome that HMRC is finally taking

:09:00. > :09:01.action in announcing that the Concentrix contract

:09:02. > :09:05.will not be renewed, it's most regrettable

:09:06. > :09:20.that the government has only done this when events have been

:09:21. > :09:30.How much of the savings were as a result of incorrectly cutting

:09:31. > :09:34.payments? How much does the government intend to claw back to

:09:35. > :09:41.directly compensate those who have been affected? The minister tells us

:09:42. > :09:46.and I am pleased, that civil servants have now been drafted in to

:09:47. > :09:49.clear up the mess. How much will that cost the taxpayer and will the

:09:50. > :09:58.government be seeking additional payment from Concentrix to fund that

:09:59. > :10:08.action? Mr Speaker, one or two of the points that the member raises

:10:09. > :10:14.there, I am not able to respond to. It is important that we are able to

:10:15. > :10:23.resolve the outstanding cases. We are not renewing the contract but we

:10:24. > :10:28.do intend to go down on fraud. It is important. There is a lot of fraud

:10:29. > :10:38.in the system. It has been a success, to be able to reduce that.

:10:39. > :10:41.We need to continue to bear down on that because money that is

:10:42. > :10:46.fraudulently obtained is not available to taxpayers. It remains a

:10:47. > :10:53.vital matter that we do address that. For the moment, my primary

:10:54. > :10:58.consideration is addressing the matter to ensure that we take care

:10:59. > :11:02.of our most vulnerable constituents. Mr Speaker, I am a big fan of

:11:03. > :11:10.helping those people who are trying very hard to get on with life. Are

:11:11. > :11:15.those people still going to be dealt with by Concentrix? Are they going

:11:16. > :11:20.to have the fear of being prosecuted as they go forwards as the what

:11:21. > :11:32.assurance can the Minister give that those people are going to be looked

:11:33. > :11:45.after? I have laid out the arrangements that are going to be

:11:46. > :11:59.taking place. We will be looking at cases where Concentrix has already

:12:00. > :12:03.focused on, open cases. Concentrix have assisted the government and

:12:04. > :12:09.indeed the taxpayer in identifying those. I think it is important to

:12:10. > :12:17.keep this in perspective. HMRC has made it clear its intention to not

:12:18. > :12:23.continue its contract. Can I thank the Minister and the HMRC for

:12:24. > :12:27.reacting so quickly to the issues? What estimation has been made of the

:12:28. > :12:31.current backlog that needs to be dealt with by Concentrix and the

:12:32. > :12:36.HMRC? How should those people who are currently being dealt with

:12:37. > :12:42.contact Concentrix? Should they contact the HMRC directly? Why were

:12:43. > :12:46.these appalling errors not acted on before they were revealed in

:12:47. > :12:53.Parliamentary questions? Will they be bringing the country back

:12:54. > :12:58.in-house in May next year? Will they commit to a review of all payments

:12:59. > :13:05.by result contracts that are completely inappropriate in our

:13:06. > :13:09.system? I am aware that the honourable lady has obviously been

:13:10. > :13:15.very active in this and has asked a number of questions. I think with

:13:16. > :13:23.regard to performance it is important to note, and performance

:13:24. > :13:27.does support this, that actually it is in the recent weeks in particular

:13:28. > :13:33.that performance has been not acceptable. It is not a case that

:13:34. > :13:38.this has been something that has been an acute problem for a

:13:39. > :13:42.considerable length of time. It is the case that performance has not

:13:43. > :13:47.been acceptable in recent weeks so I just want to make that point. With

:13:48. > :13:52.regard to who people should contact, the number is on the letters that

:13:53. > :13:55.they have received. I am aware of the problems of getting through to

:13:56. > :14:03.the phones in recent weeks. Indeed, I have had some myself. We are

:14:04. > :14:06.putting forth additional resources to allow Concentrix to focus on

:14:07. > :14:12.entering the phones, while additional staff deal with back

:14:13. > :14:18.cases and some of the complexities so that people can fake as a focus

:14:19. > :14:26.on the additional issue. Some are coming in. We think there are around

:14:27. > :14:28.2500 in the system left to deal with, because it is that time of

:14:29. > :14:55.year. Can my honourable friend clarify who

:14:56. > :15:02.from HMRC or wherever is going to deal with claims of errors, fraud

:15:03. > :15:06.and others problems. We has had a strong signal that it is not

:15:07. > :15:16.acceptable but we want to see genuine claimants compensated. I can

:15:17. > :15:24.reassure my honourable friend that both can is an HR NCR has three

:15:25. > :15:28.matters of fraud. Obviously HMRC will continue to pursue cases of

:15:29. > :15:33.fraud but indeed the government has put in additional resources into

:15:34. > :15:43.supporting the general tax avoidance and of evasion complains --

:15:44. > :15:50.compliance aspects. Mapping the Minister for statement and attention

:15:51. > :15:55.to the difference to the previous government response. I don't believe

:15:56. > :16:00.we would have this statement if not for the leadership election. I think

:16:01. > :16:05.of that and likewise I hope she would pass on our thanks for the

:16:06. > :16:11.immediate action she took on the action she took on the report I

:16:12. > :16:19.submitted. She was asked investigate the unlawful use of self-employment.

:16:20. > :16:23.The two questions I would like to ask, the worries about this contract

:16:24. > :16:25.is that they appear for some people to be cutting benefits and asking

:16:26. > :16:28.questions. And there is no mechanism

:16:29. > :16:31.by which MPs have got a hotline to try and sort

:16:32. > :16:34.out those issues out. Well very much work King --

:16:35. > :16:37.working to bring the work in House, might she acknowledge that

:16:38. > :16:40.this is a contract in place where a private company is able to make

:16:41. > :16:44.a decision on benefit money for It could be deemed as quite cheeky

:16:45. > :17:09.tasks many questions. Mr Speaker, I thank

:17:10. > :17:11.the right macro -- to honourable member around fact

:17:12. > :17:18.that it is priority to resolve I do think it is again be it

:17:19. > :17:26.a rating that through this contract we have secured

:17:27. > :17:29.to ?280 million of identified savings in terms of error and fraud

:17:30. > :17:33.and that it continues to be considerable

:17:34. > :17:36.fraud and regard to where people are I do not think it is important to

:17:37. > :17:46.recognise this contract has brought This contract does

:17:47. > :17:51.have its place but it work appropriately and it must do

:17:52. > :17:55.what it is set out to do and it should work for taxpayers and should

:17:56. > :17:57.work for the vulnerable. I will reflect on as

:17:58. > :18:00.wide a point if I may. I want to give him reassurance

:18:01. > :18:07.on that Gerald Bull point. All members of the House will have

:18:08. > :18:15.received a deluge of harrowing cases of people

:18:16. > :18:18.who have had cause to have The first of all

:18:19. > :18:31.they were even unsure this company existed,

:18:32. > :18:34.they thought it was a scam letter, There has been for delay

:18:35. > :18:39.in post-opening and try to get through on the telephone has

:18:40. > :18:41.been next to impossible. This has been a service level that

:18:42. > :18:44.has an acceptable Can she assured us that

:18:45. > :18:48.her statement shows this government is committed to

:18:49. > :18:51.helping the vulnerable immediately I thank my honourable

:18:52. > :18:57.friend for those These contracts, right

:18:58. > :19:01.across government we have important contracts with people

:19:02. > :19:02.to provide a server, but they need to be provided to an

:19:03. > :19:05.acceptable standard. HMRC have taken into account

:19:06. > :19:08.operational performance I think the focus for all of us,

:19:09. > :19:21.for ministers, for HMRC and individual members working

:19:22. > :19:25.in their constituency capacities as to make sure our most vulnerable

:19:26. > :19:28.constituents are supported as soon as possible to make sure that money

:19:29. > :19:32.they are entitled to hits their bank accounts and they do not have the

:19:33. > :19:35.stress of wondering where that money All of us as constituency

:19:36. > :19:42.members of Parliament can relay stories of how the service

:19:43. > :19:46.contract has worked and has been But on the issue of the jobs that

:19:47. > :19:51.will be lost, some of them in Belfast, can she tell us

:19:52. > :19:55.what contact she has had with the Northern Ireland executive or

:19:56. > :19:58.the HMRC has had with the relevant devolved administrations regions are

:19:59. > :20:01.about the effect on jobs and what will be done to give support

:20:02. > :20:12.to those who will lose jobs? I think it is important to note

:20:13. > :20:15.that the decision has been taken by HMRC not

:20:16. > :20:19.to renew the contract, so to that extent the decision for a private

:20:20. > :20:22.company like Concentrix as to what they do beyond that point

:20:23. > :20:25.is a matter for them. But I am sure that in the normal

:20:26. > :20:28.way, if the right honourable gentleman has

:20:29. > :20:30.concerns that nature, This is not a decision to end

:20:31. > :20:35.the contract here and no, it is a decision not to renew

:20:36. > :20:49.it in the spring. What other steps being taken

:20:50. > :20:52.by the government to protect the Can my honourable

:20:53. > :20:55.friend assure them a House that the lessons

:20:56. > :20:57.learned in this case will not be applied

:20:58. > :20:59.to the hat contract in May,

:21:00. > :21:01.but across more contracts I hope I can give that reassurance

:21:02. > :21:09.that not just in the future but obviously in the past and to date,

:21:10. > :21:13.it has always been the case that when the government contracts

:21:14. > :21:15.with the supplier to provide a service, that it should be

:21:16. > :21:17.provided to the right standard, that contract

:21:18. > :21:20.will be monitored and we make sure that service levels are except 22

:21:21. > :21:22.members Despite what the Minister

:21:23. > :21:35.has said earlier, I have constituents who have had

:21:36. > :21:39.their tax credits cut off without receiving any prior

:21:40. > :21:40.notification and has spent up to 70 minutes

:21:41. > :21:42.on the Which is a huge drain

:21:43. > :21:52.on the resources. Can she tell us whether the contract

:21:53. > :21:55.included penalties for concentric 's not providing an acceptable service

:21:56. > :21:59.level or answering call is within a set time, if not, who will

:22:00. > :22:02.take the responsibility or negotiating such

:22:03. > :22:12.Waiting 70 minutes to have a collards and is not acceptable.

:22:13. > :22:14.I would understand the distress caused.

:22:15. > :22:16.I am going to write to the

:22:17. > :22:24.honourable lady about that, I do not have the detail at hand.

:22:25. > :22:27.I need to assess what we can say in terms of

:22:28. > :23:07.She was expected to deliver at is half the original says -- savings

:23:08. > :23:20.plan on a contract. What more can the government do to improve the

:23:21. > :23:29.tendering process. This is a payment by results contract and as I said in

:23:30. > :23:36.the response to the Honourable Lady, concentric swell not be paid when

:23:37. > :23:42.they have not acted appropriately, it is important to get this right.

:23:43. > :23:47.-- Concentrix. I give him the reassurance that HCMR and indeed

:23:48. > :23:52.government ministers will always seek to get the right contracts but

:23:53. > :23:56.where there are lessons to be learnt we must reflect on them and make

:23:57. > :24:03.sure that they are then reflected in future arrangements. Last week in

:24:04. > :24:11.evidence to the Institute of government the former Secretary of

:24:12. > :24:23.State admitted that outsourcing to the private sector was not a panacea

:24:24. > :24:27.. Is it not time for a full review of outsourcing in the welfare system

:24:28. > :24:33.and looking at whether it is appropriate at all or if there is

:24:34. > :24:42.better provision to be done by civil service to oversee that this never

:24:43. > :24:47.happens again. Again, I would urge members to keep a degree of

:24:48. > :24:51.perspective. There are lots of contracts that deliver what we want

:24:52. > :24:57.and it is worth noting again that this contract delivered ?280 million

:24:58. > :25:03.of savings which is a sensible return on investment. Service levels

:25:04. > :25:07.must be acceptable and to the standard we have contracted. There

:25:08. > :25:12.are circumstances when the company used allows governments are

:25:13. > :25:20.cost-effective way of doing something they may not have the

:25:21. > :25:24.flexible capacity seed to do or it is easier in an unsure period than

:25:25. > :25:28.doing it in-house. I think the point is made and I will reflect on them

:25:29. > :25:39.but I do not draw the same general conclusion that he has. I concur

:25:40. > :25:42.with the excellent point made by the member and the Minister will note

:25:43. > :25:51.that genuine errors will occur by constituents and HMRC. Sometimes

:25:52. > :25:55.that for compassion is not shown by HMRC were looking at the

:25:56. > :26:02.circumstances, can we ensure that those are done in those difficult

:26:03. > :26:05.circumstances for those in need. Of course I have had the same

:26:06. > :26:12.experience as my honourable friend, only last week I sat with a

:26:13. > :26:17.constituent who had a very complex case and was in a very difficult

:26:18. > :26:30.situation. It is the case that if we take it upon the heart of

:26:31. > :26:36.constituents but when they are in HMRC, it is important to soar people

:26:37. > :26:43.out and get money into the bank accounts of constituents as soon as

:26:44. > :26:48.possible. It is clearly an interest in the urgent question the points

:26:49. > :26:55.are being made on all sides of the house will be heard when they need

:26:56. > :27:03.to be heard. There are a significant number of my constituents who have

:27:04. > :27:07.been left disadvantaged by the antics of the government. Canny

:27:08. > :27:11.ministers say that she will look seriously into finding this company

:27:12. > :27:14.and using those resources to compensate my constituents for the

:27:15. > :27:24.financial distress they have suffered. To reiterate what I said

:27:25. > :27:33.previously, I will ask HMRC to clarify the contractual obligations.

:27:34. > :27:37.As a constituency MP who has dealt with a number of cases I am pleased

:27:38. > :27:40.to note the action the government has taken. As a member of the Public

:27:41. > :27:43.Accounts Committee I have sat through numerous reports on the

:27:44. > :27:49.quality of service that HMRC provides, which is hardly call

:27:50. > :27:52.service, what assurance that the minister have to say that we will

:27:53. > :27:57.not see our drop-off in terms of service, standards and future

:27:58. > :28:04.arrangements? I don't believe that will be the case as I say HMRC has

:28:05. > :28:08.been dealing with cases of the same time as Concentrix throughout the

:28:09. > :28:17.contract, and I have been assured that when 100 and 50 of the

:28:18. > :28:20.additional staff deployed, and I have no reason to believe that the

:28:21. > :28:26.services are suffering. The point is been made and will be investigated.

:28:27. > :28:31.I am glad to hear that he Concentrix contract is ending but as the

:28:32. > :28:39.minister mentioned they will still be dealing with ongoing casework.

:28:40. > :28:43.Can she deal with a constituent of mind's situation who has been

:28:44. > :28:49.plunged into 13 thousand pounds of debt due to concentric. --

:28:50. > :28:59.Concentrix. Will she take up this case lease? If any member wishes to

:29:00. > :29:06.write me a look at it as a matter of priority. If she wanted to come or

:29:07. > :29:09.ring a complex case tomorrow to the drop in HMRC, if she liked to write

:29:10. > :29:23.me I will respond. Or the thank you, Mr Speaker. I

:29:24. > :29:29.first raised this issue in late January. That was about a family

:29:30. > :29:33.that did not have any income and it had been going on for wheat. Why

:29:34. > :29:45.does it take the BBC's programme to bring ministers to this dispatch box

:29:46. > :29:52.is the on Monday, HMRC and Concentrix, on the basis that no one

:29:53. > :29:56.will take responsibility. I think that involving the private sector in

:29:57. > :30:00.a sensitive, the main issue like this does not work. I am sorry to

:30:01. > :30:05.hear that the honourable gentleman had that difficult experience. I

:30:06. > :30:08.cannot agree with his general point that there is no role for the

:30:09. > :30:13.private sector in this regard. I refer again to the amount of money

:30:14. > :30:17.that has been saved to the taxpayer. There is a amount of fraud in the

:30:18. > :30:22.system and it is important that we bear down on this because clearly,

:30:23. > :30:30.that money should, we do not want to go into people for whom it is not

:30:31. > :30:36.appropriate. Most of the fraud, much of the fraud, does rest in that

:30:37. > :30:40.area. As he highlighted, it is a particularly difficult and sensitive

:30:41. > :30:43.issue to investigate but we do need to continue to investigate because

:30:44. > :30:54.the amount of fraud involved is considerable. We can all share the

:30:55. > :31:01.stories of anguish to our constituents and frustration for in

:31:02. > :31:06.dealing with this issue. We should also remember that the HMRC itself

:31:07. > :31:12.is not an innocent agent in this. It designed this contract. Its port

:31:13. > :31:17.customer hostility and suspicion into the contract, into the very

:31:18. > :31:21.practices that are in the contract and of course, it was HMRC that were

:31:22. > :31:30.providing the names that were targeted by Concentrix. Well some of

:31:31. > :31:35.those bigger policy miss guidance is being looked at as well as the

:31:36. > :31:43.enjoyment we are all having today in scapegoating Concentrix themselves?

:31:44. > :31:48.Mr Speaker, I returned to the answer I gave just a moment ago that we do

:31:49. > :31:52.need to continue to bear down on fraud in the system. There is a

:31:53. > :31:58.considerable amount of fraud. I am afraid it would be naive to think

:31:59. > :32:03.that all of this is error. There is fraud in the system but there is a

:32:04. > :32:07.lot of error which the original tax credits makes it easier. It is the

:32:08. > :32:12.case that we do need to continue to bear down on fraud but clearly, we

:32:13. > :32:17.need to do it in a way that does not make it difficult to assist the most

:32:18. > :32:21.vulnerable. Thank you, Mr Speaker. The minister has mentioned fraud and

:32:22. > :32:27.number of times. While obviously there is fraud in the system, I

:32:28. > :32:31.really do not see that as an excuse for constituents such as mine like

:32:32. > :32:35.Sarah Hodgson, with three young children, struggling to putting on

:32:36. > :32:46.the table. It is no excuse for incompetent contract is. I am glad

:32:47. > :32:50.that we have employed extra HMRC staff to assist people. The others

:32:51. > :32:56.in my area is due for closure. Our nearest regional office is more than

:32:57. > :33:00.200 Miles Drive away. Will you please review the closure of our

:33:01. > :33:08.local offices so that people can keep support in this situation is

:33:09. > :33:14.that they so much need like this? I am sorry to hear about the case that

:33:15. > :33:21.she mentions. She raises a wider issue about the modernisation issue

:33:22. > :33:26.that HMRC is going to. Perhaps it would be more appropriate if she

:33:27. > :33:31.wrote to me. It is important in terms of the modernisation of HMRC

:33:32. > :33:38.as they go forwards. Although, it does mean that some HMRC offices are

:33:39. > :33:46.being closed. It is about delivering a better and more modern service

:33:47. > :33:52.into the future for all of our constituents. I trust that there

:33:53. > :33:58.will be some compensation paid to the company, first of all for the

:33:59. > :34:06.way that the contracts were handled but also for the extra cost

:34:07. > :34:10.incurred. It was not so long ago that this house was condemning the

:34:11. > :34:14.HMRC for not answering more than half of telephone calls that were

:34:15. > :34:20.made by constituents about tax matters. What steps have the

:34:21. > :34:27.minister taken to ensure that new cases will be brought in-house, that

:34:28. > :34:33.there will not be that same problems with the HMRC that there had been

:34:34. > :34:37.with concentric? I think it is obviously documented that at times

:34:38. > :34:42.in the past, the HMRC have had problems with the phones. I think

:34:43. > :34:49.some of the information in the public domain lately has been rather

:34:50. > :34:54.outdated. The HMRC phone performance is considerably better in recent

:34:55. > :34:59.weeks. I think it is important in all of these things that we do reach

:35:00. > :35:08.some balance, with regard to the point bounce Concentrix. It is worth

:35:09. > :35:12.noting that they have amended around 5500 claims. I reiterate that this

:35:13. > :35:18.is an important exercise but really needs to be done in the right way.

:35:19. > :35:21.Thank you, Mr Speaker. I work in the news from the minister that

:35:22. > :35:28.Concentrix will not have their contract renewed. In the meantime,

:35:29. > :35:33.there has been a lot of talk about what is unacceptable. I think there

:35:34. > :35:40.has been a lot of focus on fraud. What we are talking about today is

:35:41. > :35:46.tremendous suffering. We're not talking about exceptions, we are

:35:47. > :35:52.talking about the widespread norm, causing exceptional misery to some

:35:53. > :36:01.families. Let me just yet with you a story of one of my constituents. A

:36:02. > :36:09.single mother of four, whose tax benefits were cut. As a result of

:36:10. > :36:14.that, she cannot get benefits for the baby. She has been told more

:36:15. > :36:20.importantly, that she cannot have her claim reopened for 44 days. Will

:36:21. > :36:22.the minister reassure me that she will intervene as a matter of

:36:23. > :36:28.urgency? I am sorry to hear her constituents

:36:29. > :36:32.has had such a difficult time. I would urge her to

:36:33. > :36:42.use the resource I have referred to throughout

:36:43. > :36:44.this to take that up. I hope that can be resolved

:36:45. > :36:48.and as soon as possible. I have emphasised, and HMRC

:36:49. > :36:50.are aware of this, speed is of the essence, where people have

:36:51. > :36:54.had their tax credits erroneously She is right, there is

:36:55. > :37:01.error in the system. I reiterate this is a too complex

:37:02. > :37:05.system and that is why the government is looking to make

:37:06. > :37:07.a major long-term reform to the way we do this,

:37:08. > :37:10.because even the honest taxpayer can easily fall

:37:11. > :37:13.into error in a system that was so complex in

:37:14. > :37:16.its design from the start. As we sit here,

:37:17. > :37:18.families up and down the country have had to rely on charity

:37:19. > :37:22.and food banks to make ends meet due to ridiculous decisions

:37:23. > :37:25.made by Concentrix. Given that so many

:37:26. > :37:32.are living a day to day existence,

:37:33. > :37:35.can the Minister confirm just how quickly people can expect to receive

:37:36. > :37:38.the money they are rightly The HMRC, at the point

:37:39. > :37:57.at which the facts are resolved, it is important we do that quickly,

:37:58. > :38:02.at the point when we have done and that may be in the course of one

:38:03. > :38:05.phone call, I am assured and this

:38:06. > :38:08.is what I expect to see, within a matter of around four

:38:09. > :38:11.working days, no longer, we would get money

:38:12. > :38:13.into people's accounts. But we need to establish

:38:14. > :38:26.the facts in each instance. It is worth saying,

:38:27. > :38:32.for the sake of the House, having some sense of

:38:33. > :38:33.the 6% of customers asked

:38:34. > :38:36.for a review of a decision

:38:37. > :38:39.following a cheque. That is a large number

:38:40. > :38:42.of people being checked, but nevertheless it

:38:43. > :38:44.would be wrong to think that this was a huge

:38:45. > :38:46.proportion of the cases. It is important we get

:38:47. > :38:49.those ones right and we look to pay people

:38:50. > :38:52.within days, as soon as we have The Minister says that

:38:53. > :38:56.HMRC is supporting Concentrix in performing

:38:57. > :38:59.their contract ending next year. What is the cost to the public purse

:39:00. > :39:02.of that support that is being

:39:03. > :39:04.provided and is that It has always been the case that

:39:05. > :39:14.as you would expect managers within HMRC have been working with

:39:15. > :39:16.Concentrix throughout, so I don't anticipate that that will be

:39:17. > :39:20.an enormous additional cost because there has always

:39:21. > :39:25.been a relationship because there has been some

:39:26. > :39:29.overlap in the work to be done and I would expect

:39:30. > :39:32.that to continue as we work towards the end

:39:33. > :39:37.of the contract. The Minister is engaged

:39:38. > :39:38.in crisis management, crisis management

:39:39. > :39:43.itself is not good enough. In the opening

:39:44. > :39:46.statement, she said In the opening statement,

:39:47. > :39:49.she said that Concentrix are not One of my constituents

:39:50. > :39:53.got a letter wanting Investigation is needed soon and it

:39:54. > :40:05.needs to look at the contract terms, order process and Concentrix

:40:06. > :40:09.behaviour and needs to look at what is the true

:40:10. > :40:11.resource requirements. Unless she announces this,

:40:12. > :40:13.we will be back here HMRC has data analytics

:40:14. > :40:23.and operational experience to deliver the kind of

:40:24. > :40:27.savings we are looking for in terms Practical measures going forward

:40:28. > :40:35.in simplifying the system, and improved detection

:40:36. > :40:42.of fraud are important parts of making sure we improve

:40:43. > :40:44.performance going forward. It is worth noting

:40:45. > :40:46.again that we have saved hundreds of millions of pounds

:40:47. > :40:49.to the taxpayer by reducing error and fraud but we want to make it

:40:50. > :40:53.harder in the future for people to As long as I have been one

:40:54. > :41:02.of their MPs, HMRC has treated people in the Wirral

:41:03. > :41:03.with disrespect, with indignity and this

:41:04. > :41:05.is just the worst in a long

:41:06. > :41:08.series of cases. Can I ask the minister one question,

:41:09. > :41:11.when did she first meet Concentrix to raise our

:41:12. > :41:13.concerns with them for? I have been a minister

:41:14. > :41:20.since mid-July, I have not met Concentrix because I have not

:41:21. > :41:25.been a minister for that long. Clearly colleagues,

:41:26. > :41:27.previous colleagues, But I have been working with HMRC

:41:28. > :41:32.to look at the regular monitoring and given the interest

:41:33. > :41:41.from colleagues across the House in recent weeks, I have been getting

:41:42. > :41:43.daily updates from HMRC But in the relatively short time,

:41:44. > :41:47.given that we have had summer recess, being in my post,

:41:48. > :41:50.I have not met them. I am sure HMRC will be disappointed

:41:51. > :41:54.to hear what she says but I think

:41:55. > :41:57.they would want to reflect One of the issues reported by my

:41:58. > :42:08.constituents is the requirement to send all the documentation

:42:09. > :42:11.by registered post, which costs over This is money that they can ill

:42:12. > :42:15.afford when they're living on the Will the Secretary of State

:42:16. > :42:23.look urgently at alternative methods of sending

:42:24. > :42:26.documentation in the remaining time I will ask that question,

:42:27. > :42:36.but I cannot give any assurance as to whether it is

:42:37. > :42:43.possible to alter that She highlights an important point

:42:44. > :42:49.about where we go in the future with The more that we can

:42:50. > :42:52.make these things digital and make them really easy

:42:53. > :42:55.for people to get right, the more likely we are to avoid

:42:56. > :42:58.these unhappy situations. The Financial Secretary must know

:42:59. > :43:03.I tabled five questions on this With 1800 people in

:43:04. > :43:19.Belfast employed by Concentrix, with Concentrix

:43:20. > :43:27.redeveloping onto one location in the city of Belfast,

:43:28. > :43:31.could I ask her to reflect how appalling that was

:43:32. > :43:33.that members of staff, how appalling that was that members

:43:34. > :43:37.of staff, many of my constituents, last night from a tweet by the BBC,

:43:38. > :43:41.as by any information from Concentrix and any

:43:42. > :43:43.information from this House. As I have said a number of times,

:43:44. > :43:47.the contract is not being The consideration of whether any

:43:48. > :43:51.contract is renewed is something that takes place in

:43:52. > :43:54.the normal course of events. The honourable gentleman does

:43:55. > :43:56.give me an opportunity to place on record my

:43:57. > :44:00.thanks to the many, many Concentrix It is as the same time

:44:01. > :44:05.as we shine a light on where Adam -- form is as

:44:06. > :44:08.unacceptable, there are many people who are doing a good job and

:44:09. > :44:12.providing a good level of service. Many people are succeeding

:44:13. > :44:22.in that regard. I know the Minister says she sees no

:44:23. > :44:26.need for an enquiry but I and I know many colleagues in the chamber

:44:27. > :44:30.today and certainly constituents of ours would disagree

:44:31. > :44:32.with that position. My question would be how

:44:33. > :44:35.can we learn lessons to ensure these practices employed

:44:36. > :44:38.by Concentrix don't ever come to light again,

:44:39. > :44:41.if we don't look into to light again, if we don't look

:44:42. > :44:44.into the practices carried out by some form

:44:45. > :44:46.of investigation or enquiry? I think it is right

:44:47. > :44:57.that in the normal we arrange things in the future,

:44:58. > :45:01.to reflect on what we can learn from things that have already happened,

:45:02. > :45:04.and that would be something you would do through a normal process

:45:05. > :45:07.of review and consideration. We will just have to agree to differ

:45:08. > :45:10.with regard to the issue I have been contacted by so many

:45:11. > :45:18.distressed women in my constituency about how

:45:19. > :45:31.awful Concentrix is. to mums who were only trying

:45:32. > :45:37.to renew their tax credits to get payday loans to feed

:45:38. > :45:39.their children. There is a group formed

:45:40. > :45:47.with over 5000 members. On this group, mothers

:45:48. > :45:51.share their horror stories. The lady may have got

:45:52. > :46:05.the Burnley condition. One mother hadn't

:46:06. > :46:14.eaten for three days This is sickening

:46:15. > :46:25.and should be stopped. I am aware of the Facebook

:46:26. > :46:28.group she mentions and the nature of the cases

:46:29. > :46:30.documented there. To end on when I began,

:46:31. > :46:34.Mr Speaker, that is why we are deploying additional resources

:46:35. > :46:36.so we can deal with the most difficult cases where people

:46:37. > :46:38.are vulnerable in the quickest time possible

:46:39. > :46:42.and that will be my focus and that of HMRC

:46:43. > :46:58.We come to the ten minute rule motion.

:46:59. > :47:02.Ten minute rule motion, Charlie Elphicke.

:47:03. > :47:07.I beg that leave be given to bring in a bill

:47:08. > :47:09.of the United Kingdom from membership of the European

:47:10. > :47:17.Brexit means Brexit and we will make a success of it.

:47:18. > :47:20.It also means Brexit means Brexit and it means we

:47:21. > :47:30.The matter of Article 50 is a matter for

:47:31. > :47:33.The matter of Article 50 is a matter for the Prime Minister alone.

:47:34. > :47:36.She has the mandate of the masses given to her

:47:37. > :47:39.on June the 23rd and it is right that she invoke it.

:47:40. > :47:42.I hope the sooner she invokes that the better

:47:43. > :47:45.so we have the security, the stability and the certainty we need

:47:46. > :47:48.as we seek to build a post Brexit Britain.

:47:49. > :47:51.I bring this House, I bring this bill to the House today.

:47:52. > :47:53.First to give the House an opportunity to

:47:54. > :47:59.endorse and accept the decision of the British people on June the 23rd.

:48:00. > :48:02.And second, to talk about the red lines that the British people

:48:03. > :48:14.clearly have in terms of what Brexit will look like.

:48:15. > :48:18.And third, a kind of vision we can have for the post Brexit

:48:19. > :48:21.The first issue is this issue of where

:48:22. > :48:26.members of Parliament were when it came to the referendum.

:48:27. > :48:37.I myself was concerned about the border

:48:38. > :48:40.I am here today to say that is their decision.

:48:41. > :48:49.This is in particular for the Labour Party to reject it,

:48:50. > :48:51.we should have a second referendum to drive

:48:52. > :49:01.the British people back into the European Union again.

:49:02. > :49:03.It is not an opportunity for the party opposite

:49:04. > :49:08.we accept and will submit to the will of the British people and will

:49:09. > :49:12.I see the SNP as well who don't seem like

:49:13. > :49:19.to like the result of any referendum on these British Isles at all.

:49:20. > :49:21.Including accepting the decision of the Scottish people to

:49:22. > :49:24.remain part of the European union and the United Kingdom.

:49:25. > :49:32.I would say to them, they would be wrong to

:49:33. > :49:34.think that if at first you don't succeed, vote,

:49:35. > :49:41.That would be the wrong approach to take.

:49:42. > :49:46.Turning to the red lines of the British people, it is

:49:47. > :49:49.very clear that the British people are deeply concerned about the level

:49:50. > :49:57.And they have been told and pledged in

:49:58. > :50:01.manifestos, that the number would be brought down of net migration

:50:02. > :50:12.And they are very concerned, people on Dover tell me

:50:13. > :50:14.on a regular basis, about the downward pressure this

:50:15. > :50:17.makes on their wages and they have been

:50:18. > :50:18.underlined and proved right.

:50:19. > :50:21.By important research that showed wages to be ?450

:50:22. > :50:29.lower for hard-working classes of Britain.

:50:30. > :50:37.And indeed, they found that if we did indeed succeed in bringing

:50:38. > :50:45.migration down to the tens of thousands, we would have a pay rise.

:50:46. > :50:51.There is work published by the OECD in 2009 that says mass migration has

:50:52. > :50:54.not benefit at the people of written in general. It does not have an

:50:55. > :51:02.economic good for the British people in their daily lives. That red line

:51:03. > :51:07.is really crystal clear. We must and uncontrolled EU immigration. The

:51:08. > :51:15.second point was also underlined by Lord Ashcroft. It is very clear that

:51:16. > :51:20.people do not want to have billions for Brussels. That has got to end.

:51:21. > :51:25.We cannot have any deal that involves handing billions of pounds

:51:26. > :51:30.over to Brussels. That money should remain at home and be invested in

:51:31. > :51:38.Britain. We need to use that money wisely, which brings me to the final

:51:39. > :51:44.point which I want to make. A most important point, what is a post

:51:45. > :51:49.Grexit written going to look like? My constituents say to me that it

:51:50. > :51:58.has always seemed to be about investing in HS2 or runways in

:51:59. > :52:04.in oils seems to be about benefiting the Jetset elite. Why is it never

:52:05. > :52:18.about us in London? An infrastructure project that they

:52:19. > :52:24.have been waiting for for so long, which OS seems to work for the

:52:25. > :52:32.elites, not for the regional populace? The majority of the

:52:33. > :52:42.British people live in the regions, London has only 10%.

:52:43. > :52:49.The south-east has a difference of some 26%. My constituents couldn't

:52:50. > :52:53.do that and said the allocation of resources in this country is not

:52:54. > :53:02.bear. This is an opportunity to make that zero. Then it comes down to an

:53:03. > :53:06.issue of who does Britain work for? They feel Britain to offer and works

:53:07. > :53:09.for the Philip Green 's of this world, for the privileged few,

:53:10. > :53:21.rather than the hard-working working-class kids of Dover and

:53:22. > :53:25.Darlington. That needs to change. We all know that big companies are

:53:26. > :53:31.gaining the corporate tax system and paying hardly any tax in this

:53:32. > :53:41.country, they are about Apple. We all know that is on our too. We need

:53:42. > :53:46.to make sure that when it comes to Google, that Google pay a fair share

:53:47. > :53:51.of tax in this country. When it comes to car rental businesses, for

:53:52. > :53:59.me, that showed that we are being taken for a ride. They were imposing

:54:00. > :54:05.a Grexit tax on us, while not paying any corporate tax to Britain. It is

:54:06. > :54:10.that kind of thing that drives the people of Dover a round the bend and

:54:11. > :54:14.we need to put a stop to it. We can do that when we leave the European

:54:15. > :54:20.Union. Very simply we can do that because we will not struck by their

:54:21. > :54:25.antidiscrimination rules. We need to ensure that the nation works for the

:54:26. > :54:29.people as a whole, rather than the bloated bonuses that we have seen

:54:30. > :54:37.too much of recently and in recent years. Pay in the boardroom is 150

:54:38. > :54:45.times that of the chief executives, then it is for employees. That is

:54:46. > :54:56.not right and that has doubled in the pass 20 years. -- past 20 years.

:54:57. > :55:00.That kind of culture needs to change. We need to have a country

:55:01. > :55:06.that works for everyone, not just the few. It is very important to

:55:07. > :55:12.ensure that when we have investment, we have investment in the region is,

:55:13. > :55:18.like Bristol and Birmingham and Manchester. It is important that we

:55:19. > :55:26.have rail and roads for the regions as well. Brexit means Brexit. We are

:55:27. > :55:31.going to make a success of it. It is also an opportunity to change the

:55:32. > :55:37.way we run Britain, to change our way of life. To change who we work

:55:38. > :55:43.for, and to make sure that our country works for everyone. That is

:55:44. > :55:47.the change that we want to make. It was the towns and villages of this

:55:48. > :55:51.country that decided to take this country out of the European Union

:55:52. > :55:57.and those towns should be supported for leading the charge on the kind

:55:58. > :56:08.of future that we can have as we head out into the supermarket of the

:56:09. > :56:12.world. Two to claim the honourable member of his right to bring in the

:56:13. > :56:17.bill. He said that we in Scotland should have respect for the

:56:18. > :56:23.decision, the outcome of the referendum. I very much respect the

:56:24. > :56:28.outcome of those nations who voted to leave the EU. I would simply say

:56:29. > :56:31.to my friend from Dover, perhaps he and his colleagues should respect

:56:32. > :56:38.the wishes of those nations who voted to remain in the EU. It is

:56:39. > :56:44.always sweet I think to be chided by the honourable member for Dover, who

:56:45. > :56:54.railed against a Jetset elite, who talked about the imbalance in

:56:55. > :57:00.boardroom pay. We do not need to leave the EU to tackle that

:57:01. > :57:11.imbalance. He talked about the imbalance in public spending and he

:57:12. > :57:15.was right to do so. Such is the imbalance, Scotland get even less

:57:16. > :57:20.money than the south-east gets. We do not need to leave the EU in order

:57:21. > :57:24.to rebalance public spending throughout the English regions. If I

:57:25. > :57:29.we had an English Parliament to deal with these things, things would be

:57:30. > :57:34.so much better. The honourable gentleman spoke about corporate tax

:57:35. > :57:39.and how little was paid by some of the Goliaths of the global,

:57:40. > :57:49.corporate world. We do not need to leave the EU and we can opportunity

:57:50. > :57:55.further. In essence, the honourable gentleman made a pitch to leave now

:57:56. > :58:04.because he said Brexit means Brexit and we will make a success of it.

:58:05. > :58:09.The problem, and why no one can support this is when the Prime

:58:10. > :58:17.Minister, the leader of government, leader of the Tory party is asked if

:58:18. > :58:27.Brexit means Brexit means we will be in leaving the single market, she

:58:28. > :58:30.does not know. When she was asked today if support for financial

:58:31. > :58:35.services would be maintained, she said that I refer to the answer I

:58:36. > :58:41.gave last week, which is that I do not know. On the basis that Brexit

:58:42. > :58:45.means Brexit is no more than the meaningless, campaigning expression

:58:46. > :58:50.and none of the attributes or benefits described by the honourable

:58:51. > :58:55.gentleman in terms of tackling proper pay, tackling taxation,

:58:56. > :59:05.tackling the imbalance in public regional expenditure in England will

:59:06. > :59:11.be in any way improved by Brexit. I fear that we are going to have two

:59:12. > :59:18.call against the valiant gentleman's attempts to drag the whole of the UK

:59:19. > :59:31.out of the EU before there is even a plan to stop a

:59:32. > :59:38.As many stop a as are of that opinion.

:59:39. > :59:46.The question is that the honourable member have leave to bring

:59:47. > :00:06.This is a trailer for BBC Four's conceptual art season.

:00:07. > :00:11.You see clips of a pile of bricks causing anger in a gallery,