15/09/2016 BBC Parliament on BBC Two


15/09/2016

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Urgent question, Rebecca Long Bailey.

:00:22.:00:28.

I asked the Chancellor of the Exchequer if he will make

:00:29.:00:36.

a statement on the abilities and activities in relation to tax

:00:37.:00:39.

credit investigations made on behalf of HMRC into Concentrix.

:00:40.:00:44.

The government recognises the importance of tax credits

:00:45.:00:48.

We all recognise that it is important that this support reaches

:00:49.:00:54.

That is why HMRC work hard to check that they are making the correct

:00:55.:01:09.

payments and to tackle any fraudulent claims.

:01:10.:01:11.

We must acknowledge that fraud exists in the system and should

:01:12.:01:17.

be investigated to ensure that taxpayers' money is spent directly.

:01:18.:01:20.

As part of this, Concentrix Ltd was engaged to help

:01:21.:01:23.

As a result, ?300 million worth of incorrect payments

:01:24.:01:26.

I do want to reassure the House on two key points.

:01:27.:01:32.

Firstly, Concentrix were only paid for making the right decisions.

:01:33.:01:34.

They would not receive payment for taking someone's

:01:35.:01:37.

And secondly, that Concentrix were not allowed to engage

:01:38.:01:40.

in fishing expeditions or pick on vulnerable claimants at random.

:01:41.:01:44.

But where there was evidence to suggest a claim might not be

:01:45.:01:49.

correct, Concentrix wrote to claimants

:01:50.:01:58.

to see information to confirm their eligibility.

:01:59.:02:00.

I realise, and I know this as a constituency member myself,

:02:01.:02:03.

that it can be stressful for someone to receive such a letter,

:02:04.:02:06.

but it is right that we investigate the full picture with claimants

:02:07.:02:09.

themselves to make the right payments.

:02:10.:02:11.

That is why both Concentrix and HMRC, where it does the same

:02:12.:02:15.

work, always sends a letter giving claimants 30 days to provide

:02:16.:02:18.

information before taking any further action and it is important

:02:19.:02:20.

that people do indeed respond and get in touch

:02:21.:02:23.

if they are struggling to respond to any other questions.

:02:24.:02:26.

Despite the best efforts of the staff manning the phones,

:02:27.:02:28.

with a high volume of calls in recent weeks, Concentrix have not

:02:29.:02:32.

been providing the high levels of customer service that the public

:02:33.:02:35.

expect, and which are required in their contract.

:02:36.:02:38.

HMRC has given notice that this contract will not be renewed

:02:39.:02:41.

HMRC is also no longer passing new cases to Concentrix but working

:02:42.:02:47.

with them, as a matter of urgency, to improve the service they provide

:02:48.:02:51.

to claimants and to resolve outstanding cases.

:02:52.:02:54.

I can confirm to the House that 150 HMRC staff have been redeployed

:02:55.:02:57.

with immediate effect to help them resolve any issues people

:02:58.:03:03.

are having with their claims, as quickly as possible,

:03:04.:03:08.

and Mr Speaker, I realise that colleagues on all sides of the House

:03:09.:03:11.

are concerned to get difficult cases resolved and assist vulnerable

:03:12.:03:14.

In addition to the additional resources I have already referred

:03:15.:03:30.

to, I have arranged a members' drop in in at 1 Parliament Street

:03:31.:03:34.

between 9:30am and 11am tomorrow at which we can

:03:35.:03:36.

offer guidance to colleagues, should that be helpful.

:03:37.:03:38.

Many members across the House have been contacted by distressed

:03:39.:03:43.

and anxious constituents, often hard-working individuals

:03:44.:03:45.

who have had their tax credits cut unfairly,

:03:46.:03:47.

pushing them, in many cases, into extreme hardship.

:03:48.:03:50.

Whilst we on this side certainly welcome that HMRC is finally taking

:03:51.:03:54.

action in announcing that the Concentrix contract

:03:55.:03:59.

will not be renewed, it's most regrettable

:04:00.:04:01.

that the government has only done this when events have been

:04:02.:04:09.

dramatically exposed by the media, and indeed My Honourable Friends,

:04:10.:04:12.

the member for Sheffield Healy and Birkenhead.

:04:13.:04:17.

Whilst Concentrix will be carrying out the services for another

:04:18.:04:20.

eight months, there's a risk that without radical amendment

:04:21.:04:24.

to the contract itself, service failures will continue.

:04:25.:04:26.

Most concerning is that the payment model creates a conflict of interest

:04:27.:04:30.

as noted by the Social Security Advisory Committee.

:04:31.:04:33.

Can the Minister confirm what arrangement she will make

:04:34.:04:35.

to urgently revise the contract to preserve justice

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Furthermore, as she stated, I understand HMRC will redeploy 150

:04:38.:04:43.

staff so that claimants can get through to advisers

:04:44.:04:46.

Can the Minister confirm how the government will monitor

:04:47.:04:55.

this going forward, and will the government commit

:04:56.:04:57.

to an official investigation into Concentrix's conduct

:04:58.:05:00.

since being awarded a contract in 2014, so that we can determine

:05:01.:05:08.

how this situation was allowed to arise?

:05:09.:05:10.

And one final point, Mr Speaker.

:05:11.:05:15.

Has the minister given any consideration to the real prospect

:05:16.:05:17.

of bringing this service back in-house?

:05:18.:05:26.

Mr Speaker, it is worth making the comment I think,

:05:27.:05:29.

that this is a very complicated system

:05:30.:05:32.

that this government, the previous government,

:05:33.:05:34.

indeed inherited, and it is the case that long-term, the right answer

:05:35.:05:37.

is to replace tax credits, as is our intention,

:05:38.:05:40.

because it is an unnecessarily complex system that

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But we must make it work whilst it is in operation and that is now

:05:47.:05:52.

With regard to the contract and the decision that HMRC have

:05:53.:05:56.

taken, I want to reassure the House that

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monitoring has been taking place on a regular basis throughout

:05:59.:06:01.

the contract, and HMRC have worked closely with Concentrix,

:06:02.:06:08.

but it is the case that as is documented in recent weeks

:06:09.:06:12.

that performance has not been right, and clearly, that has been something

:06:13.:06:15.

that we have noted and which we are now taking action on.

:06:16.:06:18.

With regard to the contract going forward, as I think

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I mentioned in my statement, Concentrix will be focusing

:06:22.:06:30.

on resolving outstanding claims, not opening new ones.

:06:31.:06:34.

In other words, the ones that they are already open,

:06:35.:06:38.

we'll be looking to deal with in an orderly and appropriate

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manner, and HMRC is putting in additional resources,

:06:42.:06:43.

focusing on those difficult cases where we have heard some

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high-profile examples in recent days, and to make sure that we get

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those resolved in the quickest possible time, to ensure that

:06:50.:06:53.

vulnerable constituents of all of ours are helped and supported.

:06:54.:06:56.

I don't think there is any need to go into inquiries etc.

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It is monitored on a regular basis, it is not going to be renewed

:07:03.:07:11.

when it ends in May next year, and the focus, I think,

:07:12.:07:14.

for all of us, and for me and for HMRC in the coming days

:07:15.:07:18.

and weeks, is in making sure that we get the outstanding

:07:19.:07:21.

cases and resolve them, particularly those involving

:07:22.:07:23.

the most vulnerable, and we make sure that people

:07:24.:07:26.

have the money to which they are correctly entitled.

:07:27.:07:45.

Cases women who have had their benefits withdrawn because the of

:07:46.:07:56.

men they are living with. What we need to know is how quickly these

:07:57.:08:15.

cases can be reviewed. I understand the point my right honourable friend

:08:16.:08:20.

makes. The courage people to call the HMRC it number they have

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received. We are putting people with immediate effect on to that hotline

:08:28.:08:31.

to ensure that we can resolve that. I had been talking consistently on

:08:32.:08:40.

this fact, that as soon as we can resolve the facts of the case, we

:08:41.:08:44.

will get money into people 's accounts in a matter of days.

:08:45.:08:56.

Whilst we on this side certainly welcome that HMRC is finally taking

:08:57.:08:59.

action in announcing that the Concentrix contract

:09:00.:09:01.

will not be renewed, it's most regrettable

:09:02.:09:05.

that the government has only done this when events have been

:09:06.:09:20.

How much of the savings were as a result of incorrectly cutting

:09:21.:09:30.

payments? How much does the government intend to claw back to

:09:31.:09:34.

directly compensate those who have been affected? The minister tells us

:09:35.:09:41.

and I am pleased, that civil servants have now been drafted in to

:09:42.:09:46.

clear up the mess. How much will that cost the taxpayer and will the

:09:47.:09:49.

government be seeking additional payment from Concentrix to fund that

:09:50.:09:58.

action? Mr Speaker, one or two of the points that the member raises

:09:59.:10:08.

there, I am not able to respond to. It is important that we are able to

:10:09.:10:14.

resolve the outstanding cases. We are not renewing the contract but we

:10:15.:10:23.

do intend to go down on fraud. It is important. There is a lot of fraud

:10:24.:10:28.

in the system. It has been a success, to be able to reduce that.

:10:29.:10:38.

We need to continue to bear down on that because money that is

:10:39.:10:41.

fraudulently obtained is not available to taxpayers. It remains a

:10:42.:10:46.

vital matter that we do address that. For the moment, my primary

:10:47.:10:53.

consideration is addressing the matter to ensure that we take care

:10:54.:10:58.

of our most vulnerable constituents. Mr Speaker, I am a big fan of

:10:59.:11:02.

helping those people who are trying very hard to get on with life. Are

:11:03.:11:10.

those people still going to be dealt with by Concentrix? Are they going

:11:11.:11:15.

to have the fear of being prosecuted as they go forwards as the what

:11:16.:11:20.

assurance can the Minister give that those people are going to be looked

:11:21.:11:32.

after? I have laid out the arrangements that are going to be

:11:33.:11:45.

taking place. We will be looking at cases where Concentrix has already

:11:46.:11:59.

focused on, open cases. Concentrix have assisted the government and

:12:00.:12:03.

indeed the taxpayer in identifying those. I think it is important to

:12:04.:12:09.

keep this in perspective. HMRC has made it clear its intention to not

:12:10.:12:17.

continue its contract. Can I thank the Minister and the HMRC for

:12:18.:12:23.

reacting so quickly to the issues? What estimation has been made of the

:12:24.:12:27.

current backlog that needs to be dealt with by Concentrix and the

:12:28.:12:31.

HMRC? How should those people who are currently being dealt with

:12:32.:12:36.

contact Concentrix? Should they contact the HMRC directly? Why were

:12:37.:12:42.

these appalling errors not acted on before they were revealed in

:12:43.:12:46.

Parliamentary questions? Will they be bringing the country back

:12:47.:12:53.

in-house in May next year? Will they commit to a review of all payments

:12:54.:12:58.

by result contracts that are completely inappropriate in our

:12:59.:13:05.

system? I am aware that the honourable lady has obviously been

:13:06.:13:09.

very active in this and has asked a number of questions. I think with

:13:10.:13:15.

regard to performance it is important to note, and performance

:13:16.:13:23.

does support this, that actually it is in the recent weeks in particular

:13:24.:13:27.

that performance has been not acceptable. It is not a case that

:13:28.:13:33.

this has been something that has been an acute problem for a

:13:34.:13:38.

considerable length of time. It is the case that performance has not

:13:39.:13:42.

been acceptable in recent weeks so I just want to make that point. With

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regard to who people should contact, the number is on the letters that

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they have received. I am aware of the problems of getting through to

:13:53.:13:55.

the phones in recent weeks. Indeed, I have had some myself. We are

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putting forth additional resources to allow Concentrix to focus on

:14:04.:14:06.

entering the phones, while additional staff deal with back

:14:07.:14:12.

cases and some of the complexities so that people can fake as a focus

:14:13.:14:18.

on the additional issue. Some are coming in. We think there are around

:14:19.:14:26.

2500 in the system left to deal with, because it is that time of

:14:27.:14:28.

year. Can my honourable friend clarify who

:14:29.:14:55.

from HMRC or wherever is going to deal with claims of errors, fraud

:14:56.:15:02.

and others problems. We has had a strong signal that it is not

:15:03.:15:06.

acceptable but we want to see genuine claimants compensated. I can

:15:07.:15:16.

reassure my honourable friend that both can is an HR NCR has three

:15:17.:15:24.

matters of fraud. Obviously HMRC will continue to pursue cases of

:15:25.:15:28.

fraud but indeed the government has put in additional resources into

:15:29.:15:33.

supporting the general tax avoidance and of evasion complains --

:15:34.:15:43.

compliance aspects. Mapping the Minister for statement and attention

:15:44.:15:50.

to the difference to the previous government response. I don't believe

:15:51.:15:55.

we would have this statement if not for the leadership election. I think

:15:56.:16:00.

of that and likewise I hope she would pass on our thanks for the

:16:01.:16:05.

immediate action she took on the action she took on the report I

:16:06.:16:11.

submitted. She was asked investigate the unlawful use of self-employment.

:16:12.:16:19.

The two questions I would like to ask, the worries about this contract

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is that they appear for some people to be cutting benefits and asking

:16:24.:16:25.

questions. And there is no mechanism

:16:26.:16:28.

by which MPs have got a hotline to try and sort

:16:29.:16:31.

out those issues out. Well very much work King --

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working to bring the work in House, might she acknowledge that

:16:35.:16:37.

this is a contract in place where a private company is able to make

:16:38.:16:40.

a decision on benefit money for It could be deemed as quite cheeky

:16:41.:16:44.

tasks many questions. Mr Speaker, I thank

:16:45.:17:09.

the right macro -- to honourable member around fact

:17:10.:17:11.

that it is priority to resolve I do think it is again be it

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a rating that through this contract we have secured

:17:19.:17:26.

to ?280 million of identified savings in terms of error and fraud

:17:27.:17:29.

and that it continues to be considerable

:17:30.:17:33.

fraud and regard to where people are I do not think it is important to

:17:34.:17:36.

recognise this contract has brought This contract does

:17:37.:17:46.

have its place but it work appropriately and it must do

:17:47.:17:51.

what it is set out to do and it should work for taxpayers and should

:17:52.:17:55.

work for the vulnerable. I will reflect on as

:17:56.:17:57.

wide a point if I may. I want to give him reassurance

:17:58.:18:00.

on that Gerald Bull point. All members of the House will have

:18:01.:18:07.

received a deluge of harrowing cases of people

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who have had cause to have The first of all

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they were even unsure this company existed,

:18:19.:18:31.

they thought it was a scam letter, There has been for delay

:18:32.:18:34.

in post-opening and try to get through on the telephone has

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been next to impossible. This has been a service level that

:18:40.:18:41.

has an acceptable Can she assured us that

:18:42.:18:44.

her statement shows this government is committed to

:18:45.:18:48.

helping the vulnerable immediately I thank my honourable

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friend for those These contracts, right

:18:52.:18:57.

across government we have important contracts with people

:18:58.:19:01.

to provide a server, but they need to be provided to an

:19:02.:19:02.

acceptable standard. HMRC have taken into account

:19:03.:19:05.

operational performance I think the focus for all of us,

:19:06.:19:08.

for ministers, for HMRC and individual members working

:19:09.:19:21.

in their constituency capacities as to make sure our most vulnerable

:19:22.:19:25.

constituents are supported as soon as possible to make sure that money

:19:26.:19:28.

they are entitled to hits their bank accounts and they do not have the

:19:29.:19:32.

stress of wondering where that money All of us as constituency

:19:33.:19:35.

members of Parliament can relay stories of how the service

:19:36.:19:42.

contract has worked and has been But on the issue of the jobs that

:19:43.:19:46.

will be lost, some of them in Belfast, can she tell us

:19:47.:19:51.

what contact she has had with the Northern Ireland executive or

:19:52.:19:55.

the HMRC has had with the relevant devolved administrations regions are

:19:56.:19:58.

about the effect on jobs and what will be done to give support

:19:59.:20:01.

to those who will lose jobs? I think it is important to note

:20:02.:20:12.

that the decision has been taken by HMRC not

:20:13.:20:15.

to renew the contract, so to that extent the decision for a private

:20:16.:20:19.

company like Concentrix as to what they do beyond that point

:20:20.:20:22.

is a matter for them. But I am sure that in the normal

:20:23.:20:25.

way, if the right honourable gentleman has

:20:26.:20:28.

concerns that nature, This is not a decision to end

:20:29.:20:30.

the contract here and no, it is a decision not to renew

:20:31.:20:35.

it in the spring. What other steps being taken

:20:36.:20:49.

by the government to protect the Can my honourable

:20:50.:20:52.

friend assure them a House that the lessons

:20:53.:20:55.

learned in this case will not be applied

:20:56.:20:57.

to the hat contract in May,

:20:58.:20:59.

but across more contracts I hope I can give that reassurance

:21:00.:21:01.

that not just in the future but obviously in the past and to date,

:21:02.:21:09.

it has always been the case that when the government contracts

:21:10.:21:13.

with the supplier to provide a service, that it should be

:21:14.:21:15.

provided to the right standard, that contract

:21:16.:21:17.

will be monitored and we make sure that service levels are except 22

:21:18.:21:20.

members Despite what the Minister

:21:21.:21:22.

has said earlier, I have constituents who have had

:21:23.:21:35.

their tax credits cut off without receiving any prior

:21:36.:21:39.

notification and has spent up to 70 minutes

:21:40.:21:40.

on the Which is a huge drain

:21:41.:21:42.

on the resources. Can she tell us whether the contract

:21:43.:21:52.

included penalties for concentric 's not providing an acceptable service

:21:53.:21:55.

level or answering call is within a set time, if not, who will

:21:56.:21:59.

take the responsibility or negotiating such

:22:00.:22:02.

Waiting 70 minutes to have a collards and is not acceptable.

:22:03.:22:12.

I would understand the distress caused.

:22:13.:22:14.

I am going to write to the

:22:15.:22:16.

honourable lady about that, I do not have the detail at hand.

:22:17.:22:24.

I need to assess what we can say in terms of

:22:25.:22:27.

She was expected to deliver at is half the original says -- savings

:22:28.:23:07.

plan on a contract. What more can the government do to improve the

:23:08.:23:20.

tendering process. This is a payment by results contract and as I said in

:23:21.:23:29.

the response to the Honourable Lady, concentric swell not be paid when

:23:30.:23:36.

they have not acted appropriately, it is important to get this right.

:23:37.:23:42.

-- Concentrix. I give him the reassurance that HCMR and indeed

:23:43.:23:47.

government ministers will always seek to get the right contracts but

:23:48.:23:52.

where there are lessons to be learnt we must reflect on them and make

:23:53.:23:56.

sure that they are then reflected in future arrangements. Last week in

:23:57.:24:03.

evidence to the Institute of government the former Secretary of

:24:04.:24:11.

State admitted that outsourcing to the private sector was not a panacea

:24:12.:24:23.

. Is it not time for a full review of outsourcing in the welfare system

:24:24.:24:27.

and looking at whether it is appropriate at all or if there is

:24:28.:24:33.

better provision to be done by civil service to oversee that this never

:24:34.:24:42.

happens again. Again, I would urge members to keep a degree of

:24:43.:24:47.

perspective. There are lots of contracts that deliver what we want

:24:48.:24:51.

and it is worth noting again that this contract delivered ?280 million

:24:52.:24:57.

of savings which is a sensible return on investment. Service levels

:24:58.:25:03.

must be acceptable and to the standard we have contracted. There

:25:04.:25:07.

are circumstances when the company used allows governments are

:25:08.:25:12.

cost-effective way of doing something they may not have the

:25:13.:25:20.

flexible capacity seed to do or it is easier in an unsure period than

:25:21.:25:24.

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

:25:25.:25:28.

but I do not draw the same general conclusion that he has. I concur

:25:29.:25:39.

with the excellent point made by the member and the Minister will note

:25:40.:25:42.

that genuine errors will occur by constituents and HMRC. Sometimes

:25:43.:25:51.

that for compassion is not shown by HMRC were looking at the

:25:52.:25:55.

circumstances, can we ensure that those are done in those difficult

:25:56.:26:02.

circumstances for those in need. Of course I have had the same

:26:03.:26:05.

experience as my honourable friend, only last week I sat with a

:26:06.:26:12.

constituent who had a very complex case and was in a very difficult

:26:13.:26:17.

situation. It is the case that if we take it upon the heart of

:26:18.:26:30.

constituents but when they are in HMRC, it is important to soar people

:26:31.:26:36.

out and get money into the bank accounts of constituents as soon as

:26:37.:26:43.

possible. It is clearly an interest in the urgent question the points

:26:44.:26:48.

are being made on all sides of the house will be heard when they need

:26:49.:26:55.

to be heard. There are a significant number of my constituents who have

:26:56.:27:03.

been left disadvantaged by the antics of the government. Canny

:27:04.:27:07.

ministers say that she will look seriously into finding this company

:27:08.:27:11.

and using those resources to compensate my constituents for the

:27:12.:27:14.

financial distress they have suffered. To reiterate what I said

:27:15.:27:24.

previously, I will ask HMRC to clarify the contractual obligations.

:27:25.:27:33.

As a constituency MP who has dealt with a number of cases I am pleased

:27:34.:27:37.

to note the action the government has taken. As a member of the Public

:27:38.:27:40.

Accounts Committee I have sat through numerous reports on the

:27:41.:27:43.

quality of service that HMRC provides, which is hardly call

:27:44.:27:49.

service, what assurance that the minister have to say that we will

:27:50.:27:52.

not see our drop-off in terms of service, standards and future

:27:53.:27:57.

arrangements? I don't believe that will be the case as I say HMRC has

:27:58.:28:04.

been dealing with cases of the same time as Concentrix throughout the

:28:05.:28:08.

contract, and I have been assured that when 100 and 50 of the

:28:09.:28:17.

additional staff deployed, and I have no reason to believe that the

:28:18.:28:20.

services are suffering. The point is been made and will be investigated.

:28:21.:28:26.

I am glad to hear that he Concentrix contract is ending but as the

:28:27.:28:31.

minister mentioned they will still be dealing with ongoing casework.

:28:32.:28:39.

Can she deal with a constituent of mind's situation who has been

:28:40.:28:43.

plunged into 13 thousand pounds of debt due to concentric. --

:28:44.:28:49.

Concentrix. Will she take up this case lease? If any member wishes to

:28:50.:28:59.

write me a look at it as a matter of priority. If she wanted to come or

:29:00.:29:06.

ring a complex case tomorrow to the drop in HMRC, if she liked to write

:29:07.:29:09.

me I will respond. Or the thank you, Mr Speaker. I

:29:10.:29:23.

first raised this issue in late January. That was about a family

:29:24.:29:29.

that did not have any income and it had been going on for wheat. Why

:29:30.:29:33.

does it take the BBC's programme to bring ministers to this dispatch box

:29:34.:29:45.

is the on Monday, HMRC and Concentrix, on the basis that no one

:29:46.:29:52.

will take responsibility. I think that involving the private sector in

:29:53.:29:56.

a sensitive, the main issue like this does not work. I am sorry to

:29:57.:30:00.

hear that the honourable gentleman had that difficult experience. I

:30:01.:30:05.

cannot agree with his general point that there is no role for the

:30:06.:30:08.

private sector in this regard. I refer again to the amount of money

:30:09.:30:13.

that has been saved to the taxpayer. There is a amount of fraud in the

:30:14.:30:17.

system and it is important that we bear down on this because clearly,

:30:18.:30:22.

that money should, we do not want to go into people for whom it is not

:30:23.:30:30.

appropriate. Most of the fraud, much of the fraud, does rest in that

:30:31.:30:36.

area. As he highlighted, it is a particularly difficult and sensitive

:30:37.:30:40.

issue to investigate but we do need to continue to investigate because

:30:41.:30:43.

the amount of fraud involved is considerable. We can all share the

:30:44.:30:54.

stories of anguish to our constituents and frustration for in

:30:55.:31:01.

dealing with this issue. We should also remember that the HMRC itself

:31:02.:31:06.

is not an innocent agent in this. It designed this contract. Its port

:31:07.:31:12.

customer hostility and suspicion into the contract, into the very

:31:13.:31:17.

practices that are in the contract and of course, it was HMRC that were

:31:18.:31:21.

providing the names that were targeted by Concentrix. Well some of

:31:22.:31:30.

those bigger policy miss guidance is being looked at as well as the

:31:31.:31:35.

enjoyment we are all having today in scapegoating Concentrix themselves?

:31:36.:31:43.

Mr Speaker, I returned to the answer I gave just a moment ago that we do

:31:44.:31:48.

need to continue to bear down on fraud in the system. There is a

:31:49.:31:52.

considerable amount of fraud. I am afraid it would be naive to think

:31:53.:31:58.

that all of this is error. There is fraud in the system but there is a

:31:59.:32:03.

lot of error which the original tax credits makes it easier. It is the

:32:04.:32:07.

case that we do need to continue to bear down on fraud but clearly, we

:32:08.:32:12.

need to do it in a way that does not make it difficult to assist the most

:32:13.:32:17.

vulnerable. Thank you, Mr Speaker. The minister has mentioned fraud and

:32:18.:32:21.

number of times. While obviously there is fraud in the system, I

:32:22.:32:27.

really do not see that as an excuse for constituents such as mine like

:32:28.:32:31.

Sarah Hodgson, with three young children, struggling to putting on

:32:32.:32:35.

the table. It is no excuse for incompetent contract is. I am glad

:32:36.:32:46.

that we have employed extra HMRC staff to assist people. The others

:32:47.:32:50.

in my area is due for closure. Our nearest regional office is more than

:32:51.:32:56.

200 Miles Drive away. Will you please review the closure of our

:32:57.:33:00.

local offices so that people can keep support in this situation is

:33:01.:33:08.

that they so much need like this? I am sorry to hear about the case that

:33:09.:33:14.

she mentions. She raises a wider issue about the modernisation issue

:33:15.:33:21.

that HMRC is going to. Perhaps it would be more appropriate if she

:33:22.:33:26.

wrote to me. It is important in terms of the modernisation of HMRC

:33:27.:33:31.

as they go forwards. Although, it does mean that some HMRC offices are

:33:32.:33:38.

being closed. It is about delivering a better and more modern service

:33:39.:33:46.

into the future for all of our constituents. I trust that there

:33:47.:33:52.

will be some compensation paid to the company, first of all for the

:33:53.:33:58.

way that the contracts were handled but also for the extra cost

:33:59.:34:06.

incurred. It was not so long ago that this house was condemning the

:34:07.:34:10.

HMRC for not answering more than half of telephone calls that were

:34:11.:34:14.

made by constituents about tax matters. What steps have the

:34:15.:34:20.

minister taken to ensure that new cases will be brought in-house, that

:34:21.:34:27.

there will not be that same problems with the HMRC that there had been

:34:28.:34:33.

with concentric? I think it is obviously documented that at times

:34:34.:34:37.

in the past, the HMRC have had problems with the phones. I think

:34:38.:34:42.

some of the information in the public domain lately has been rather

:34:43.:34:49.

outdated. The HMRC phone performance is considerably better in recent

:34:50.:34:54.

weeks. I think it is important in all of these things that we do reach

:34:55.:34:59.

some balance, with regard to the point bounce Concentrix. It is worth

:35:00.:35:08.

noting that they have amended around 5500 claims. I reiterate that this

:35:09.:35:12.

is an important exercise but really needs to be done in the right way.

:35:13.:35:18.

Thank you, Mr Speaker. I work in the news from the minister that

:35:19.:35:21.

Concentrix will not have their contract renewed. In the meantime,

:35:22.:35:28.

there has been a lot of talk about what is unacceptable. I think there

:35:29.:35:33.

has been a lot of focus on fraud. What we are talking about today is

:35:34.:35:40.

tremendous suffering. We're not talking about exceptions, we are

:35:41.:35:46.

talking about the widespread norm, causing exceptional misery to some

:35:47.:35:52.

families. Let me just yet with you a story of one of my constituents. A

:35:53.:36:01.

single mother of four, whose tax benefits were cut. As a result of

:36:02.:36:09.

that, she cannot get benefits for the baby. She has been told more

:36:10.:36:14.

importantly, that she cannot have her claim reopened for 44 days. Will

:36:15.:36:20.

the minister reassure me that she will intervene as a matter of

:36:21.:36:22.

urgency? I am sorry to hear her constituents

:36:23.:36:28.

has had such a difficult time. I would urge her to

:36:29.:36:32.

use the resource I have referred to throughout

:36:33.:36:42.

this to take that up. I hope that can be resolved

:36:43.:36:44.

and as soon as possible. I have emphasised, and HMRC

:36:45.:36:48.

are aware of this, speed is of the essence, where people have

:36:49.:36:50.

had their tax credits erroneously She is right, there is

:36:51.:36:54.

error in the system. I reiterate this is a too complex

:36:55.:37:01.

system and that is why the government is looking to make

:37:02.:37:05.

a major long-term reform to the way we do this,

:37:06.:37:07.

because even the honest taxpayer can easily fall

:37:08.:37:10.

into error in a system that was so complex in

:37:11.:37:13.

its design from the start. As we sit here,

:37:14.:37:16.

families up and down the country have had to rely on charity

:37:17.:37:18.

and food banks to make ends meet due to ridiculous decisions

:37:19.:37:22.

made by Concentrix. Given that so many

:37:23.:37:25.

are living a day to day existence,

:37:26.:37:32.

can the Minister confirm just how quickly people can expect to receive

:37:33.:37:35.

the money they are rightly The HMRC, at the point

:37:36.:37:38.

at which the facts are resolved, it is important we do that quickly,

:37:39.:37:57.

at the point when we have done and that may be in the course of one

:37:58.:38:02.

phone call, I am assured and this

:38:03.:38:05.

is what I expect to see, within a matter of around four

:38:06.:38:08.

working days, no longer, we would get money

:38:09.:38:11.

into people's accounts. But we need to establish

:38:12.:38:13.

the facts in each instance. It is worth saying,

:38:14.:38:26.

for the sake of the House, having some sense of

:38:27.:38:32.

the 6% of customers asked

:38:33.:38:33.

for a review of a decision

:38:34.:38:36.

following a cheque. That is a large number

:38:37.:38:39.

of people being checked, but nevertheless it

:38:40.:38:42.

would be wrong to think that this was a huge

:38:43.:38:44.

proportion of the cases. It is important we get

:38:45.:38:46.

those ones right and we look to pay people

:38:47.:38:49.

within days, as soon as we have The Minister says that

:38:50.:38:52.

HMRC is supporting Concentrix in performing

:38:53.:38:56.

their contract ending next year. What is the cost to the public purse

:38:57.:38:59.

of that support that is being

:39:00.:39:02.

provided and is that It has always been the case that

:39:03.:39:04.

as you would expect managers within HMRC have been working with

:39:05.:39:14.

Concentrix throughout, so I don't anticipate that that will be

:39:15.:39:16.

an enormous additional cost because there has always

:39:17.:39:20.

been a relationship because there has been some

:39:21.:39:25.

overlap in the work to be done and I would expect

:39:26.:39:29.

that to continue as we work towards the end

:39:30.:39:32.

of the contract. The Minister is engaged

:39:33.:39:37.

in crisis management, crisis management

:39:38.:39:38.

itself is not good enough. In the opening

:39:39.:39:43.

statement, she said In the opening statement,

:39:44.:39:46.

she said that Concentrix are not One of my constituents

:39:47.:39:49.

got a letter wanting Investigation is needed soon and it

:39:50.:39:53.

needs to look at the contract terms, order process and Concentrix

:39:54.:40:05.

behaviour and needs to look at what is the true

:40:06.:40:09.

resource requirements. Unless she announces this,

:40:10.:40:11.

we will be back here HMRC has data analytics

:40:12.:40:13.

and operational experience to deliver the kind of

:40:14.:40:23.

savings we are looking for in terms Practical measures going forward

:40:24.:40:27.

in simplifying the system, and improved detection

:40:28.:40:35.

of fraud are important parts of making sure we improve

:40:36.:40:42.

performance going forward. It is worth noting

:40:43.:40:44.

again that we have saved hundreds of millions of pounds

:40:45.:40:46.

to the taxpayer by reducing error and fraud but we want to make it

:40:47.:40:49.

harder in the future for people to As long as I have been one

:40:50.:40:53.

of their MPs, HMRC has treated people in the Wirral

:40:54.:41:02.

with disrespect, with indignity and this

:41:03.:41:03.

is just the worst in a long

:41:04.:41:05.

series of cases. Can I ask the minister one question,

:41:06.:41:08.

when did she first meet Concentrix to raise our

:41:09.:41:11.

concerns with them for? I have been a minister

:41:12.:41:13.

since mid-July, I have not met Concentrix because I have not

:41:14.:41:20.

been a minister for that long. Clearly colleagues,

:41:21.:41:25.

previous colleagues, But I have been working with HMRC

:41:26.:41:27.

to look at the regular monitoring and given the interest

:41:28.:41:32.

from colleagues across the House in recent weeks, I have been getting

:41:33.:41:41.

daily updates from HMRC But in the relatively short time,

:41:42.:41:43.

given that we have had summer recess, being in my post,

:41:44.:41:47.

I have not met them. I am sure HMRC will be disappointed

:41:48.:41:50.

to hear what she says but I think

:41:51.:41:54.

they would want to reflect One of the issues reported by my

:41:55.:41:57.

constituents is the requirement to send all the documentation

:41:58.:42:08.

by registered post, which costs over This is money that they can ill

:42:09.:42:11.

afford when they're living on the Will the Secretary of State

:42:12.:42:15.

look urgently at alternative methods of sending

:42:16.:42:23.

documentation in the remaining time I will ask that question,

:42:24.:42:26.

but I cannot give any assurance as to whether it is

:42:27.:42:36.

possible to alter that She highlights an important point

:42:37.:42:43.

about where we go in the future with The more that we can

:42:44.:42:49.

make these things digital and make them really easy

:42:50.:42:52.

for people to get right, the more likely we are to avoid

:42:53.:42:55.

these unhappy situations. The Financial Secretary must know

:42:56.:42:58.

I tabled five questions on this With 1800 people in

:42:59.:43:03.

Belfast employed by Concentrix, with Concentrix

:43:04.:43:19.

redeveloping onto one location in the city of Belfast,

:43:20.:43:27.

could I ask her to reflect how appalling that was

:43:28.:43:31.

that members of staff, how appalling that was that members

:43:32.:43:33.

of staff, many of my constituents, last night from a tweet by the BBC,

:43:34.:43:37.

as by any information from Concentrix and any

:43:38.:43:41.

information from this House. As I have said a number of times,

:43:42.:43:43.

the contract is not being The consideration of whether any

:43:44.:43:47.

contract is renewed is something that takes place in

:43:48.:43:51.

the normal course of events. The honourable gentleman does

:43:52.:43:54.

give me an opportunity to place on record my

:43:55.:43:56.

thanks to the many, many Concentrix It is as the same time

:43:57.:44:00.

as we shine a light on where Adam -- form is as

:44:01.:44:05.

unacceptable, there are many people who are doing a good job and

:44:06.:44:08.

providing a good level of service. Many people are succeeding

:44:09.:44:12.

in that regard. I know the Minister says she sees no

:44:13.:44:22.

need for an enquiry but I and I know many colleagues in the chamber

:44:23.:44:26.

today and certainly constituents of ours would disagree

:44:27.:44:30.

with that position. My question would be how

:44:31.:44:32.

can we learn lessons to ensure these practices employed

:44:33.:44:35.

by Concentrix don't ever come to light again,

:44:36.:44:38.

if we don't look into to light again, if we don't look

:44:39.:44:41.

into the practices carried out by some form

:44:42.:44:44.

of investigation or enquiry? I think it is right

:44:45.:44:46.

that in the normal we arrange things in the future,

:44:47.:44:57.

to reflect on what we can learn from things that have already happened,

:44:58.:45:01.

and that would be something you would do through a normal process

:45:02.:45:04.

of review and consideration. We will just have to agree to differ

:45:05.:45:07.

with regard to the issue I have been contacted by so many

:45:08.:45:10.

distressed women in my constituency about how

:45:11.:45:18.

awful Concentrix is. to mums who were only trying

:45:19.:45:31.

to renew their tax credits to get payday loans to feed

:45:32.:45:37.

their children. There is a group formed

:45:38.:45:39.

with over 5000 members. On this group, mothers

:45:40.:45:47.

share their horror stories. The lady may have got

:45:48.:45:51.

the Burnley condition. One mother hadn't

:45:52.:46:05.

eaten for three days This is sickening

:46:06.:46:14.

and should be stopped. I am aware of the Facebook

:46:15.:46:25.

group she mentions and the nature of the cases

:46:26.:46:28.

documented there. To end on when I began,

:46:29.:46:30.

Mr Speaker, that is why we are deploying additional resources

:46:31.:46:34.

so we can deal with the most difficult cases where people

:46:35.:46:36.

are vulnerable in the quickest time possible

:46:37.:46:38.

and that will be my focus and that of HMRC

:46:39.:46:42.

We come to the ten minute rule motion.

:46:43.:46:58.

Ten minute rule motion, Charlie Elphicke.

:46:59.:47:02.

I beg that leave be given to bring in a bill

:47:03.:47:07.

of the United Kingdom from membership of the European

:47:08.:47:09.

Brexit means Brexit and we will make a success of it.

:47:10.:47:17.

It also means Brexit means Brexit and it means we

:47:18.:47:20.

The matter of Article 50 is a matter for

:47:21.:47:30.

The matter of Article 50 is a matter for the Prime Minister alone.

:47:31.:47:33.

She has the mandate of the masses given to her

:47:34.:47:36.

on June the 23rd and it is right that she invoke it.

:47:37.:47:39.

I hope the sooner she invokes that the better

:47:40.:47:42.

so we have the security, the stability and the certainty we need

:47:43.:47:45.

as we seek to build a post Brexit Britain.

:47:46.:47:48.

I bring this House, I bring this bill to the House today.

:47:49.:47:51.

First to give the House an opportunity to

:47:52.:47:53.

endorse and accept the decision of the British people on June the 23rd.

:47:54.:47:59.

And second, to talk about the red lines that the British people

:48:00.:48:02.

clearly have in terms of what Brexit will look like.

:48:03.:48:14.

And third, a kind of vision we can have for the post Brexit

:48:15.:48:18.

The first issue is this issue of where

:48:19.:48:21.

members of Parliament were when it came to the referendum.

:48:22.:48:26.

I myself was concerned about the border

:48:27.:48:37.

I am here today to say that is their decision.

:48:38.:48:40.

This is in particular for the Labour Party to reject it,

:48:41.:48:49.

we should have a second referendum to drive

:48:50.:48:51.

the British people back into the European Union again.

:48:52.:49:01.

It is not an opportunity for the party opposite

:49:02.:49:03.

we accept and will submit to the will of the British people and will

:49:04.:49:08.

I see the SNP as well who don't seem like

:49:09.:49:12.

to like the result of any referendum on these British Isles at all.

:49:13.:49:19.

Including accepting the decision of the Scottish people to

:49:20.:49:21.

remain part of the European union and the United Kingdom.

:49:22.:49:24.

I would say to them, they would be wrong to

:49:25.:49:32.

think that if at first you don't succeed, vote,

:49:33.:49:34.

That would be the wrong approach to take.

:49:35.:49:41.

Turning to the red lines of the British people, it is

:49:42.:49:46.

very clear that the British people are deeply concerned about the level

:49:47.:49:49.

And they have been told and pledged in

:49:50.:49:57.

manifestos, that the number would be brought down of net migration

:49:58.:50:01.

And they are very concerned, people on Dover tell me

:50:02.:50:12.

on a regular basis, about the downward pressure this

:50:13.:50:14.

makes on their wages and they have been

:50:15.:50:17.

underlined and proved right.

:50:18.:50:18.

By important research that showed wages to be ?450

:50:19.:50:21.

lower for hard-working classes of Britain.

:50:22.:50:29.

And indeed, they found that if we did indeed succeed in bringing

:50:30.:50:37.

migration down to the tens of thousands, we would have a pay rise.

:50:38.:50:45.

There is work published by the OECD in 2009 that says mass migration has

:50:46.:50:51.

not benefit at the people of written in general. It does not have an

:50:52.:50:54.

economic good for the British people in their daily lives. That red line

:50:55.:51:02.

is really crystal clear. We must and uncontrolled EU immigration. The

:51:03.:51:07.

second point was also underlined by Lord Ashcroft. It is very clear that

:51:08.:51:15.

people do not want to have billions for Brussels. That has got to end.

:51:16.:51:20.

We cannot have any deal that involves handing billions of pounds

:51:21.:51:25.

over to Brussels. That money should remain at home and be invested in

:51:26.:51:30.

Britain. We need to use that money wisely, which brings me to the final

:51:31.:51:38.

point which I want to make. A most important point, what is a post

:51:39.:51:44.

Grexit written going to look like? My constituents say to me that it

:51:45.:51:49.

has always seemed to be about investing in HS2 or runways in

:51:50.:51:58.

in oils seems to be about benefiting the Jetset elite. Why is it never

:51:59.:52:04.

about us in London? An infrastructure project that they

:52:05.:52:18.

have been waiting for for so long, which OS seems to work for the

:52:19.:52:24.

elites, not for the regional populace? The majority of the

:52:25.:52:32.

British people live in the regions, London has only 10%.

:52:33.:52:42.

The south-east has a difference of some 26%. My constituents couldn't

:52:43.:52:49.

do that and said the allocation of resources in this country is not

:52:50.:52:53.

bear. This is an opportunity to make that zero. Then it comes down to an

:52:54.:53:02.

issue of who does Britain work for? They feel Britain to offer and works

:53:03.:53:06.

for the Philip Green 's of this world, for the privileged few,

:53:07.:53:09.

rather than the hard-working working-class kids of Dover and

:53:10.:53:21.

Darlington. That needs to change. We all know that big companies are

:53:22.:53:25.

gaining the corporate tax system and paying hardly any tax in this

:53:26.:53:31.

country, they are about Apple. We all know that is on our too. We need

:53:32.:53:41.

to make sure that when it comes to Google, that Google pay a fair share

:53:42.:53:46.

of tax in this country. When it comes to car rental businesses, for

:53:47.:53:51.

me, that showed that we are being taken for a ride. They were imposing

:53:52.:53:59.

a Grexit tax on us, while not paying any corporate tax to Britain. It is

:54:00.:54:05.

that kind of thing that drives the people of Dover a round the bend and

:54:06.:54:10.

we need to put a stop to it. We can do that when we leave the European

:54:11.:54:14.

Union. Very simply we can do that because we will not struck by their

:54:15.:54:20.

antidiscrimination rules. We need to ensure that the nation works for the

:54:21.:54:25.

people as a whole, rather than the bloated bonuses that we have seen

:54:26.:54:29.

too much of recently and in recent years. Pay in the boardroom is 150

:54:30.:54:37.

times that of the chief executives, then it is for employees. That is

:54:38.:54:45.

not right and that has doubled in the pass 20 years. -- past 20 years.

:54:46.:54:56.

That kind of culture needs to change. We need to have a country

:54:57.:55:00.

that works for everyone, not just the few. It is very important to

:55:01.:55:06.

ensure that when we have investment, we have investment in the region is,

:55:07.:55:12.

like Bristol and Birmingham and Manchester. It is important that we

:55:13.:55:18.

have rail and roads for the regions as well. Brexit means Brexit. We are

:55:19.:55:26.

going to make a success of it. It is also an opportunity to change the

:55:27.:55:31.

way we run Britain, to change our way of life. To change who we work

:55:32.:55:37.

for, and to make sure that our country works for everyone. That is

:55:38.:55:43.

the change that we want to make. It was the towns and villages of this

:55:44.:55:47.

country that decided to take this country out of the European Union

:55:48.:55:51.

and those towns should be supported for leading the charge on the kind

:55:52.:55:57.

of future that we can have as we head out into the supermarket of the

:55:58.:56:08.

world. Two to claim the honourable member of his right to bring in the

:56:09.:56:12.

bill. He said that we in Scotland should have respect for the

:56:13.:56:17.

decision, the outcome of the referendum. I very much respect the

:56:18.:56:23.

outcome of those nations who voted to leave the EU. I would simply say

:56:24.:56:28.

to my friend from Dover, perhaps he and his colleagues should respect

:56:29.:56:31.

the wishes of those nations who voted to remain in the EU. It is

:56:32.:56:38.

always sweet I think to be chided by the honourable member for Dover, who

:56:39.:56:44.

railed against a Jetset elite, who talked about the imbalance in

:56:45.:56:54.

boardroom pay. We do not need to leave the EU to tackle that

:56:55.:57:00.

imbalance. He talked about the imbalance in public spending and he

:57:01.:57:11.

was right to do so. Such is the imbalance, Scotland get even less

:57:12.:57:15.

money than the south-east gets. We do not need to leave the EU in order

:57:16.:57:20.

to rebalance public spending throughout the English regions. If I

:57:21.:57:24.

we had an English Parliament to deal with these things, things would be

:57:25.:57:29.

so much better. The honourable gentleman spoke about corporate tax

:57:30.:57:34.

and how little was paid by some of the Goliaths of the global,

:57:35.:57:39.

corporate world. We do not need to leave the EU and we can opportunity

:57:40.:57:49.

further. In essence, the honourable gentleman made a pitch to leave now

:57:50.:57:55.

because he said Brexit means Brexit and we will make a success of it.

:57:56.:58:04.

The problem, and why no one can support this is when the Prime

:58:05.:58:09.

Minister, the leader of government, leader of the Tory party is asked if

:58:10.:58:17.

Brexit means Brexit means we will be in leaving the single market, she

:58:18.:58:27.

does not know. When she was asked today if support for financial

:58:28.:58:30.

services would be maintained, she said that I refer to the answer I

:58:31.:58:35.

gave last week, which is that I do not know. On the basis that Brexit

:58:36.:58:41.

means Brexit is no more than the meaningless, campaigning expression

:58:42.:58:45.

and none of the attributes or benefits described by the honourable

:58:46.:58:50.

gentleman in terms of tackling proper pay, tackling taxation,

:58:51.:58:55.

tackling the imbalance in public regional expenditure in England will

:58:56.:59:05.

be in any way improved by Brexit. I fear that we are going to have two

:59:06.:59:11.

call against the valiant gentleman's attempts to drag the whole of the UK

:59:12.:59:18.

out of the EU before there is even a plan to stop a

:59:19.:59:31.

As many stop a as are of that opinion.

:59:32.:59:38.

The question is that the honourable member have leave to bring

:59:39.:59:46.

This is a trailer for BBC Four's conceptual art season.

:59:47.:00:06.

You see clips of a pile of bricks causing anger in a gallery,

:00:07.:00:11.

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