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Tax credits mum 'falsely accused of marriage to dead man' | Tax credits mum 'falsely accused of marriage to dead man' |
(about 11 hours later) | |
A teenage mother had her child tax credits stopped after she was wrongly accused of being married to a dead 74-year-old man, the BBC has learned. | A teenage mother had her child tax credits stopped after she was wrongly accused of being married to a dead 74-year-old man, the BBC has learned. |
Nicola McKenzie is one of hundreds of people complaining they have been incorrectly punished by the US firm Concentrix, used by the government to cut tax credit fraud and overpayment. | Nicola McKenzie is one of hundreds of people complaining they have been incorrectly punished by the US firm Concentrix, used by the government to cut tax credit fraud and overpayment. |
She is struggling to feed her son, she told the Victoria Derbyshire programme. | She is struggling to feed her son, she told the Victoria Derbyshire programme. |
The government said Concentrix would "not be paid" for wrong decisions. | |
The Treasury has revealed 120 cases since last October where the company did not "fully" meet the performance standards laid out in its contract. | |
But it is feared the actual number may be higher. The Facebook campaign group Concentrix Mums, which has 5,600 members, says hundreds more people have been affected by errors. | But it is feared the actual number may be higher. The Facebook campaign group Concentrix Mums, which has 5,600 members, says hundreds more people have been affected by errors. |
'Make contact' | 'Make contact' |
Labour MP Louise Haigh is demanding that Concentrix be stripped of its contract, saying: "They've stopped people's benefits on a quite incredible scale in order to chase profits." | Labour MP Louise Haigh is demanding that Concentrix be stripped of its contract, saying: "They've stopped people's benefits on a quite incredible scale in order to chase profits." |
Ms McKenzie, a 19-year-old single mother from West Yorkshire, received a letter from the company saying her child tax credits would be cancelled. | Ms McKenzie, a 19-year-old single mother from West Yorkshire, received a letter from the company saying her child tax credits would be cancelled. |
"Basically they were accusing me of being married to a 74-year-old bloke that used to live here way before I did, saying that it's a normal thing for my kind of age," she said. | "Basically they were accusing me of being married to a 74-year-old bloke that used to live here way before I did, saying that it's a normal thing for my kind of age," she said. |
"When I spoke to the council, they said he was deceased and died on 5 July 2016," Ms McKenzie added. "Then they said 'Well, you still need to get him to make contact with us'. And I said 'Well, heaven doesn't have opening hours, so what do you want me to do about that?'." | "When I spoke to the council, they said he was deceased and died on 5 July 2016," Ms McKenzie added. "Then they said 'Well, you still need to get him to make contact with us'. And I said 'Well, heaven doesn't have opening hours, so what do you want me to do about that?'." |
Ms McKenzie said she had lost £64 a week, which meant she was finding it difficult to provide nappies and food for her two-year-old son. | Ms McKenzie said she had lost £64 a week, which meant she was finding it difficult to provide nappies and food for her two-year-old son. |
In May last year, Concentrix won a £75m contract to try to save the government more than £1bn in incorrect or fraudulent tax credit payments. | In May last year, Concentrix won a £75m contract to try to save the government more than £1bn in incorrect or fraudulent tax credit payments. |
Tax credits - the Child Tax Credit and the Working Tax Credit - are government payments made to households on low incomes. | Tax credits - the Child Tax Credit and the Working Tax Credit - are government payments made to households on low incomes. |
Concentrix's government contract is based on a payment-by-results model, with the "maximisation of revenue flows" as one of its key requirements - meaning it makes more money if it cuts more payments. | Concentrix's government contract is based on a payment-by-results model, with the "maximisation of revenue flows" as one of its key requirements - meaning it makes more money if it cuts more payments. |
'Very personal' | 'Very personal' |
Sharon Scargill, a mother from West Yorkshire, told the Victoria Derbyshire programme her tax credits had been cut after she received a letter from the company saying she was living with another woman of whom she had never heard. | Sharon Scargill, a mother from West Yorkshire, told the Victoria Derbyshire programme her tax credits had been cut after she received a letter from the company saying she was living with another woman of whom she had never heard. |
"I've got £20 to last me two weeks, as of yesterday, to feed me and my daughter and for the bills that I'm supposed to pay and the gas and electric," she said. | "I've got £20 to last me two weeks, as of yesterday, to feed me and my daughter and for the bills that I'm supposed to pay and the gas and electric," she said. |
Ms Haigh, MP for Sheffield Heeley, said some people receiving the letters were confusing them with a phishing scam, as they asked for "very personal details", such as bank statements and information on partners' details. The problems with Concentrix were on a "grand scale", she added. | Ms Haigh, MP for Sheffield Heeley, said some people receiving the letters were confusing them with a phishing scam, as they asked for "very personal details", such as bank statements and information on partners' details. The problems with Concentrix were on a "grand scale", she added. |
But an HM Revenue and Customs spokesperson said support was "available for those who need it", adding: "We take great care to make sure that correct tax credit payments are made to prevent customers getting into debt, which they may struggle to repay. | But an HM Revenue and Customs spokesperson said support was "available for those who need it", adding: "We take great care to make sure that correct tax credit payments are made to prevent customers getting into debt, which they may struggle to repay. |
"Payments to Concentrix are based on the quality and accuracy of their work. They will not be paid if the decisions they make about claimants' awards are wrong." | "Payments to Concentrix are based on the quality and accuracy of their work. They will not be paid if the decisions they make about claimants' awards are wrong." |
A Concentrix spokesman said: "We recognise that the re-evaluation of individual tax credits claims can be difficult for all concerned. | A Concentrix spokesman said: "We recognise that the re-evaluation of individual tax credits claims can be difficult for all concerned. |
"We adopt a rigorous process at every stage to ensure we manage this process responsibly, and in full accordance with the protocols and guidance set by HMRC." | "We adopt a rigorous process at every stage to ensure we manage this process responsibly, and in full accordance with the protocols and guidance set by HMRC." |
The Victoria Derbyshire programme is broadcast on weekdays between 09:00 and 11:00 on BBC Two and the BBC News channel. | The Victoria Derbyshire programme is broadcast on weekdays between 09:00 and 11:00 on BBC Two and the BBC News channel. |
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