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Concentrix claimant 'taking out payday loans to cope' | |
(about 11 hours later) | |
A benefit claimant has told the BBC she is still suffering as a result of having her payments wrongly blocked by the US contractor Concentrix. | |
Two months after HM Customs and Revenue (HMRC) terminated its contract with the firm, the mother has described how she has been forced into debt as a result. | |
Meanwhile a report has said that 35,000 people had payments wrongly stopped. | |
The National Audit Office (NAO) also said that, so far, nearly £87,000 has been handed out in compensation. | |
Debt stress | |
Marie Crowley told the BBC's Victoria Derbyshire programme that she had had to take out payday loans to cover her debts, after HMRC blocked her child tax credits of £150 a week back in September 2016. | |
However, when the tax authorities agreed to repay it, they said she could not have a lump sum. Instead the payments would be spread over the rest of the tax year. | |
Because her weekly income then went up, she was unable to claim housing benefit. | |
"The response I got, really, was: 'well, you have got your money back, so don't complain'," she said. | |
As a result, she is having difficulty repaying payday loans. | |
"I am stressing about paying debts, and having to ring debt companies as they are chasing me about direct debits." | |
Worry and distress | Worry and distress |
In just over two years, 108,000 people had their tax credits changed or stopped by Concentrix, according to the NAO report. | In just over two years, 108,000 people had their tax credits changed or stopped by Concentrix, according to the NAO report. |
But almost a third of those decisions had subsequently been overturned, it said. | But almost a third of those decisions had subsequently been overturned, it said. |
By mid-December 2016, "HMRC had paid a total of £86,815 in compensation for complaints relating to cases handled by Concentrix" the report added. | By mid-December 2016, "HMRC had paid a total of £86,815 in compensation for complaints relating to cases handled by Concentrix" the report added. |
That included almost £68,000 for worry and distress. | That included almost £68,000 for worry and distress. |
The BBC has previously reported the case of Nicola McKenzie, a teenage mother who had her child tax credits stopped by the company after she was wrongly accused of being married to a 74-year-old man. | |
Concentrix was hired to try to save more than £1bn in incorrect or fraudulent tax credit payments, but saved less than a fifth of that target. | |
HMRC, the UK's tax agency, terminated the contract in November. | |
'Challenges' | 'Challenges' |
Senior figures from HMRC and Concentrix will be called before MPs later this month to explain the failures. | Senior figures from HMRC and Concentrix will be called before MPs later this month to explain the failures. |
A Concentrix spokesman said: "This was a hugely complex contract and programme, and as the report highlights, a number of issues emerged at the outset which laid the foundations for the challenges experienced throughout, particularly last year." | A Concentrix spokesman said: "This was a hugely complex contract and programme, and as the report highlights, a number of issues emerged at the outset which laid the foundations for the challenges experienced throughout, particularly last year." |
The firm was paid £32.5m during the contract, but told the NAO it had made a loss of £20.5m on the deal. | The firm was paid £32.5m during the contract, but told the NAO it had made a loss of £20.5m on the deal. |
An HMRC spokesman said: "We apologise to all those who did not receive the standard of service that they should have". | An HMRC spokesman said: "We apologise to all those who did not receive the standard of service that they should have". |