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Company that threatened tax credit claimants could become MoJ's bailiffs Company that threatened tax credit claimants could become MoJ's bailiffs
(about 5 hours later)
An outsourcing company that has been criticised for sending threatening letters to people legitimately claiming tax credits is the preferred bidder for a £675m government contract to collect court fines.An outsourcing company that has been criticised for sending threatening letters to people legitimately claiming tax credits is the preferred bidder for a £675m government contract to collect court fines.
Concentrix, a Belfast-based firm owned by a US conglomerate, has already begun advertising for staff to chase people who owe money to the courts, even though it has not yet been officially named as the winning bidder for the Ministry of Justice contract.Concentrix, a Belfast-based firm owned by a US conglomerate, has already begun advertising for staff to chase people who owe money to the courts, even though it has not yet been officially named as the winning bidder for the Ministry of Justice contract.
Many tax credit claimants, particularly lone parents, have accused the firm of going on a “fishing expedition” as part of an existing contract with HM Revenue and Customs to clamp down on possible fraudsters.Many tax credit claimants, particularly lone parents, have accused the firm of going on a “fishing expedition” as part of an existing contract with HM Revenue and Customs to clamp down on possible fraudsters.
Confirmation from the government that Concentrix is the preferred bidder follows a lengthy tussle for the contract between major outsourcing firms including BT and Atos. The privatisation was announced two years ago by the then justice secretary Chris Grayling.Confirmation from the government that Concentrix is the preferred bidder follows a lengthy tussle for the contract between major outsourcing firms including BT and Atos. The privatisation was announced two years ago by the then justice secretary Chris Grayling.
The decision to privatise a functioning arm of government angered many civil servants and Labour MPs. They fear that sensitive information held by the courts, such as addresses, will have to be passed to the private sector to allow the bailiffs to do their jobs properly. There are continuing complaints that the private bailiff industry lacks proper regulation and targets the easier-to-find, often more vulnerable people rather than the more serious and hard-to-chase criminals.The decision to privatise a functioning arm of government angered many civil servants and Labour MPs. They fear that sensitive information held by the courts, such as addresses, will have to be passed to the private sector to allow the bailiffs to do their jobs properly. There are continuing complaints that the private bailiff industry lacks proper regulation and targets the easier-to-find, often more vulnerable people rather than the more serious and hard-to-chase criminals.
Last year the National Compliance Enforcement Service, the current state-owned collection service, raised £518m in fines, penalties and confiscation orders.Last year the National Compliance Enforcement Service, the current state-owned collection service, raised £518m in fines, penalties and confiscation orders.
Concentrix, which is part of the multibillion pound US business services company Synnex, appears to be very confident that it will win the contract. The firm has already begun advertising for at least a dozen related jobs such as communications managers, commercial managers and a “delivery excellence team leader” in London, Runcorn and Leeds.Concentrix, which is part of the multibillion pound US business services company Synnex, appears to be very confident that it will win the contract. The firm has already begun advertising for at least a dozen related jobs such as communications managers, commercial managers and a “delivery excellence team leader” in London, Runcorn and Leeds.
The firm drew criticism in February when it emerged that it was sending letters to many lone parents claiming to have evidence that they were living with a partner.The firm drew criticism in February when it emerged that it was sending letters to many lone parents claiming to have evidence that they were living with a partner.
The letters said the claimants would have to send evidence to the contrary, including bank statements and divorce papers, if they wished to keep their tax credits.The letters said the claimants would have to send evidence to the contrary, including bank statements and divorce papers, if they wished to keep their tax credits.
Related: MoJ to use private debt collectors to help recover unpaid court finesRelated: MoJ to use private debt collectors to help recover unpaid court fines
Using online forums such as Mumsnet, some women said they thought the letters were a hoax because they asked for personal financial information such as bank and mortgage statements to be sent to the company within 30 days. Those who ignore the letters apparently risk having their tax credits halted.Using online forums such as Mumsnet, some women said they thought the letters were a hoax because they asked for personal financial information such as bank and mortgage statements to be sent to the company within 30 days. Those who ignore the letters apparently risk having their tax credits halted.
A spokesman for PCS, the union which represents ministry of justice officials, said: “Given Concentrix’s poor record in HMRC, courts staff are very concerned about the implications for fines collection. These adverts were a serious breach and deeply unfair on staff who have been kept in the dark throughout a process they never believed was necessary anyway.”A spokesman for PCS, the union which represents ministry of justice officials, said: “Given Concentrix’s poor record in HMRC, courts staff are very concerned about the implications for fines collection. These adverts were a serious breach and deeply unfair on staff who have been kept in the dark throughout a process they never believed was necessary anyway.”
In September, Concentrix was caught up in an HMRC fiasco when an IT system failure meant the firm could not fulfil an outsourced tax credit contract for three months. In September, an IT system failure meant the firm could not fulfil an outsourced tax credit contract for three months.
Staff in Belfast were told to come to the office and clock in every day, even though they could not work because their computers were cut off from those on the mainland.Staff in Belfast were told to come to the office and clock in every day, even though they could not work because their computers were cut off from those on the mainland.
MPs including the former director of public prosecutions, Sir Keir Starmer, put down an early day motion on Wednesday calling for the service to be left in public hands.MPs including the former director of public prosecutions, Sir Keir Starmer, put down an early day motion on Wednesday calling for the service to be left in public hands.
Ministers have argued that big business would be more effective than the courts at reducing outstanding fines, which was around £2bn when the competition to find a private-sector provider was launched two years ago.Ministers have argued that big business would be more effective than the courts at reducing outstanding fines, which was around £2bn when the competition to find a private-sector provider was launched two years ago.
Last year, two private companies that held contracts with the MoJ for the electronic tagging of offenders admitted they had been overcharging taxpayers by tens of millions of pounds. The two firms – G4S and Serco – had charged to monitor non-existent electronic tags, some of which had been assigned to dead offenders.Last year, two private companies that held contracts with the MoJ for the electronic tagging of offenders admitted they had been overcharging taxpayers by tens of millions of pounds. The two firms – G4S and Serco – had charged to monitor non-existent electronic tags, some of which had been assigned to dead offenders.
An MoJ spokesman confirmed that Concentrix is the preferred bidder for the fines collection contract, but said there was no planned date to decide if it has won the contract.An MoJ spokesman confirmed that Concentrix is the preferred bidder for the fines collection contract, but said there was no planned date to decide if it has won the contract.
He said: “HM Courts and Tribunal Service can confirm that no contract has been awarded. Synnex Concentrix UK is the preferred bidder and is preparing as much as it can for a contract to be signed. It has advertised these roles at its own risk knowing that a contract may not be awarded.”He said: “HM Courts and Tribunal Service can confirm that no contract has been awarded. Synnex Concentrix UK is the preferred bidder and is preparing as much as it can for a contract to be signed. It has advertised these roles at its own risk knowing that a contract may not be awarded.”
A spokesman for Synnex Concentrix UK Ltd said that no contract has yet been signed. “The roles were advertised at our own risk,” he said. He added that the letters sent out to tax-credit claimants were the same as those issued by HMRC, and were only sent if there was an indication that circumstances had changed.A spokesman for Synnex Concentrix UK Ltd said that no contract has yet been signed. “The roles were advertised at our own risk,” he said. He added that the letters sent out to tax-credit claimants were the same as those issued by HMRC, and were only sent if there was an indication that circumstances had changed.
“What we ask claimants for is additional information and to contact us to discuss their claim,” he said. “Suggestions that this process is a random exercise are simply incorrect.”“What we ask claimants for is additional information and to contact us to discuss their claim,” he said. “Suggestions that this process is a random exercise are simply incorrect.”
Asked about the the failure of HMRC IT systems, the spokesman said: “Concentrix and HMRC did everything in their power to get the project started as soon as possible. The taxpayer incurred no costs and Concentrix covered all the expenses of this three-month period, including employee salaries.”Asked about the the failure of HMRC IT systems, the spokesman said: “Concentrix and HMRC did everything in their power to get the project started as soon as possible. The taxpayer incurred no costs and Concentrix covered all the expenses of this three-month period, including employee salaries.”