Concentrix — House of Commons, 2016-10-26
Topic: Social Welfare
Peter Christopher Dowd (Labour, Centre-left): I am glad to follow the hon. Member for Inverclyde (Ronnie Cowan) We have heard many interventions and speeches. The hon. Member for Paisley and Renfrewshire South (Mhairi Black) talked about a fishing expedition on the part of Concentrix. She enlightened us about the real Casanova of Scotland, R. S. McColl—I thank her for that—but more importantly, the cataclysmic effect of this flawed process. The hon. Member for Torbay (Kevin Foster), in a thoughtful contribution, gave us the experiences of his constituents and welcomed the Government’s actions in relation to the renewal of the contract My hon. Friend the Member for Stretford and Urmston (Kate Green) focused on the policy design that has led to single women, in particular, being affected or targeted, talking about the effects on their children and setting out a series of questions that went to the heart of the matter. The hon. Member for Gloucester (Richard Graham) discussed the relative value and efficiency of the contractor’s services, the role of HMRC, and the role of incentives in contracts of this nature. The hon. Member for Ayr, Carrick and Cumnock (Corri Wilson) talked about a conflict of interest and the bad practice of Concentrix. My hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) spoke of a series of constituents, usually single mothers, who have been distressed by the process, citing a catalogue of errors, and the need to fast-track these people’s benefits. My hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones) talked about the hardship caused to his constituents and the common factors in the contractor’s lack of understanding and of compromise The hon. Member for Foyle (Mark Durkan) welcomed the personal intervention of the Financial Secretary, but questioned HMRC’s role in the process and spoke of the need for a change in its culture. The hon. Member for Dundee West (Chris Law) gave a number of examples of how people are being pushed into poverty. My hon. Friend the Member for Garston and Halewood (Maria Eagle) mentioned the influx of cases in August and asked what had caused that spike. She also talked about phantom tenants, the unreachable, and the harsh and inaccessible bureaucracy My hon. Friend the Member for Sheffield, Heeley (Louise Haigh) said that we want a system that supports people, not conglomerates, and a Government who will ensure that people, not corporates, are at the top of the agenda. My hon. Friend the Member for Ogmore (Chris Elmore) talked about the effect on single mothers, but also asked the key question of how many others have been affected, have not been able to reach out to their MPs and have suffered in silence. The hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) suggested providing support for free communication with HMRC, and the hon. Member for Inverclyde said that the responsibility lies with the Government and that the citizen’s relationship should be with the state, not individual contractors I welcome the Minister’s mea culpa, but it does not go far enough. In last week’s Westminster Hall debate, I said that I, like other hon. Members, had been contacted by distressed constituents who had had their child tax credits stopped, with scant attention paid to due process. In effect, the plenipotentiary powers given by the Government to Concentrix to act as it saw fit to punish and penalise tax credit claimants were used with an alacrity bordering on the enthusiastic and manic. It has come to something when it is difficult to put a cigarette paper between the question of who, out of the Government and Concentrix, has been the bigger of the two culprits, but, following the principle of, "Whoever pays the piper calls the tune," I opt for the Government As I said in last week’s debate, it does not take a genius to work out that, if a company is paid on the basis of bonus or commission to find tax credit error and fraud, it will start with the easy targets. In pursuit of a business model approved by the Government, Concentrix pursued people, mainly working women, to provide information. It was nothing short of overbearing state intrusion into private lives, but it was done under the guise of reclaiming taxpayers’ money from fraudsters and cheats, which is how many people felt that they were treated The plain fact, however, is that there was no evidence. In many cases, the victims of that intrusion were left penniless and had little capacity to fight back, as many Members have said. Meanwhile, the Savings (Government Contributions) Bill, which is currently in Committee, encourages people to save money. One agent of the Government administers the giving away of taxpayers’ money while another takes money away, by diktat, from working women. What a topsy-turvy state of affairs The whole process was deeply flawed and, as has been said, operated on the presumption that people were guilty until proven innocent. Apparently, a claimant would be sent a letter by Concentrix indicating that they were not meeting the standards for a child tax credit claim, and requiring them to provide evidence of their occupancy arrangement. Some attempted to call Concentrix, only to find that the number was engaged, but if the company did not hear from the claimant, their tax credits were stopped summarily I do not know whether Ministers were consulted on, or asked to sign off, that process. I asked that question last week, but did not receive an answer, so I ask them to enlighten us. Even Atos did not have the power to withdraw benefits. Concentrix was given carte blanche to do so, in a licensed way, by the Government, who were in the throes of renewing the contract for a job well done, which is remarkable. Did Ministers ask why Concentrix had so many savings on its books, and did they listen to the complaints of many of our constituents at an earlier stage Last week, the Economic Secretary claimed, very creatively, that it was the Government who stepped in to get things back on track when they realised that the service being provided by Concentrix was not good enough. That rewriting of history would be risible if the matter was not so serious for thousands of mothers all over the country. In reality, it was the Opposition who originally asked the National Audit Office to investigate, and we pushed for oversight and demanded action for the thousands of families who have still not received payments from Concentrix. The Government took action only under duress and pressure from the Opposition and the national media.