MP calls for probe into American tax credits company

AN MP has called on the National Audit Office (NAO) to investigate the decision HM Revenue and Customs to award a contract to the American outsourcing firm Concentrix.

The company, which checks tax credit entitlements for HMRC, won the £75 million contract in May last year but has recently been told it will not be renewed after accusations of failures.

Northern Isles MP, Alistair Carmichael wants the NAO to launch an investigation, and has urged the government to change its stance on outsourcing.

He said: “I have been shocked to hear from people in the Northern Isles of the inhumane and unprofessional conduct of Concentrix.

“This company is carrying out Government business but has left a trail of misery and distress in their wake.

“I have never taken the view government has to do everything but managing the tax credit system does seem like an obvious function to be carried out by HMRC.”

It is claimed the US firm made several mistakes and hundreds of people had their tax credits incorrectly cut, and has been reported that some staff faced calls from suicidal claimants as a result.

Mr Carmichael, who has tabled an early day motion calling on the NAO to intervene, said: “Taxpayers need to know the full costs and receive assurances that their money will not be wasted in this way again, and those who have suffered at the hands of Concentrix require an apology at the very least.

“I hope my Early Day Motion in Parliament will gain the support of crossparty MPs who have heard similar tales of this firm’s poor conduct and the impact on their constituents.”