On 13 September, HMRC announced that it would not extend the contract with Concentrix beyond its scheduled expiry in May 2017. Following further discussions since this announcement and having evaluated all options available, we have agreed that it would be in both parties’ interests and those of tax credit customers to end the contract early.
HMRC has secured £193 million in estimated savings for the Exchequer, and the amount paid to Concentrix over the life of the contract has been around £32.5million. Around 250 Concentrix staff have also transferred to HMRC and all 181,000 cases transferred from Concentrix to HMRC have been finalised.
Jon Thompson, Chief Executive of HMRC, said:
“We have reached agreement with Concentrix to exit this contract early. HMRC’s dedicated staff have cleared all of the cases transferred from Concentrix while striking the right balance in both providing the standards of service that customers rightly expect and bearing down on error and fraud in the tax credits system.
“This is the right outcome for customers and for the taxpayer. I’m also pleased to receive 250 Concentrix staff, who will help us to deliver our priorities, offering job security to them well beyond the scheduled expiry of the contract in May 2017.”
Customers do not need to take action as a result of this change other than to follow any instructions they have or will receive from HMRC.