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| HMRC customer service standards will fall after further cuts, say MPs HMRC customer service standards will fall after further cuts, say MPs | |
| (4 months later) | |
| Further cuts to HMRC’s customer services could trigger another plunge in standards, MPs have warned, with customers left waiting for hours on helplines because of surges in demand. | Further cuts to HMRC’s customer services could trigger another plunge in standards, MPs have warned, with customers left waiting for hours on helplines because of surges in demand. |
| HMRC plans to reduce spending on customer services by a third over the next five years, despite MPs on the Commons public accounts committee criticising the collapse of helpline services in 2014/15 when staff levels were slashed by 5,600. | HMRC plans to reduce spending on customer services by a third over the next five years, despite MPs on the Commons public accounts committee criticising the collapse of helpline services in 2014/15 when staff levels were slashed by 5,600. |
| Waiting times tripled over that period and taxpayers spent 4m hours on hold to the tax office in 2015/16, while incurring call charges. | Waiting times tripled over that period and taxpayers spent 4m hours on hold to the tax office in 2015/16, while incurring call charges. |
| Though staff levels have since gone up and waiting times have been reduced, MPs say they fear the planned cuts of 34% by 2021, as HMRC shifts focus to digital systems, will cause another major drop in standards. | Though staff levels have since gone up and waiting times have been reduced, MPs say they fear the planned cuts of 34% by 2021, as HMRC shifts focus to digital systems, will cause another major drop in standards. |
| The committee called on HMRC to have “a clear understanding of customer behaviour to estimate how demand will change” before it commits to staff cuts. | The committee called on HMRC to have “a clear understanding of customer behaviour to estimate how demand will change” before it commits to staff cuts. |
| HMRC should also “estimate the cost to those using its services, including factors such as charges incurred using the 0300 helpline and time spent waiting on the telephone,” the PAC report said. | HMRC should also “estimate the cost to those using its services, including factors such as charges incurred using the 0300 helpline and time spent waiting on the telephone,” the PAC report said. |
| Labour MP Meg Hillier, who chairs the committee, said the prospect of further cuts to spending on HMRC’s customer service “will chill the blood of many taxpayers”. | Labour MP Meg Hillier, who chairs the committee, said the prospect of further cuts to spending on HMRC’s customer service “will chill the blood of many taxpayers”. |
| “HMRC’s recent performance in this area has been appalling for long periods and left members of the public counting the cost in time and money,” she continued. | “HMRC’s recent performance in this area has been appalling for long periods and left members of the public counting the cost in time and money,” she continued. |
| “It is bad enough that people trying to pay their fair share of tax should have been kept waiting for so long. | “It is bad enough that people trying to pay their fair share of tax should have been kept waiting for so long. |
| “But holding for HMRC’s helpline has hit them in the pocket too – a serious concern for those on low incomes and a dismal message to send to small businesses, the self-employed and anyone else simply seeking advice.” | “But holding for HMRC’s helpline has hit them in the pocket too – a serious concern for those on low incomes and a dismal message to send to small businesses, the self-employed and anyone else simply seeking advice.” |
| She said HMRC had “serious work to do” before the committee could have confidence it was working efficiently. | She said HMRC had “serious work to do” before the committee could have confidence it was working efficiently. |
| “Efforts to meet government spending targets must not come through ill-conceived measures that effectively penalise the people departments are intended to serve,” she said. | “Efforts to meet government spending targets must not come through ill-conceived measures that effectively penalise the people departments are intended to serve,” she said. |
| An HMRC spokesman called the report “an inaccurate, out-of-date reflection of our phone performance” though he acknowledged service levels were not acceptable last year and said HMRC had apologised at the time. | An HMRC spokesman called the report “an inaccurate, out-of-date reflection of our phone performance” though he acknowledged service levels were not acceptable last year and said HMRC had apologised at the time. |
| “But the PAC is well aware our phone lines have since fully recovered and we are now offering our best service levels in years. Wait times are now below five minutes and customers consistently rate the support they receive on the phones as excellent,” he said, adding that customers could now get in touch via webchat or Twitter. | “But the PAC is well aware our phone lines have since fully recovered and we are now offering our best service levels in years. Wait times are now below five minutes and customers consistently rate the support they receive on the phones as excellent,” he said, adding that customers could now get in touch via webchat or Twitter. |
| Mark Serwotka, general secretary of the PCS union, said it was “staggering” that MPs were still having to warn about the consequences of cuts to customer service. | Mark Serwotka, general secretary of the PCS union, said it was “staggering” that MPs were still having to warn about the consequences of cuts to customer service. |
| “The department must now halt the reckless plans it has to slash more jobs and close all but a handful of its UK offices, and the government must give HMRC the resources it needs, or we will just see repeats of these problems for years to come,” he said. | “The department must now halt the reckless plans it has to slash more jobs and close all but a handful of its UK offices, and the government must give HMRC the resources it needs, or we will just see repeats of these problems for years to come,” he said. |
| Frank Haskew, head of tax at the Institute for Chartered Accountants, said there was still room for improvement in post handling, which he said was still below target, and in the handling of specialist helplines. | Frank Haskew, head of tax at the Institute for Chartered Accountants, said there was still room for improvement in post handling, which he said was still below target, and in the handling of specialist helplines. |
| “It is not clear how HMRC is going to maintain and improve customer service given the cuts in funding and staff expected by 2020/21,” he said. “HMRC appears to be relying on a dramatic reduction in the number of phone calls to its helplines, but at the moment the jury is out on how personal taxpayers will respond to digital services and the impact that it will have on reducing the number of calls.” | “It is not clear how HMRC is going to maintain and improve customer service given the cuts in funding and staff expected by 2020/21,” he said. “HMRC appears to be relying on a dramatic reduction in the number of phone calls to its helplines, but at the moment the jury is out on how personal taxpayers will respond to digital services and the impact that it will have on reducing the number of calls.” |