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HMRC 'was close to' renewing Concentrix tax credits deal HMRC 'was close to' renewing Concentrix tax credits deal
(about 4 hours later)
The government was "close to" signing a new deal with a firm tasked with cutting tax credit fraud before the BBC revealed hundreds of people had wrongly had payments stopped, a source says.The government was "close to" signing a new deal with a firm tasked with cutting tax credit fraud before the BBC revealed hundreds of people had wrongly had payments stopped, a source says.
The Victoria Derbyshire programme broke the story and shortly afterwards, the US company Concentrix was told it would not have its contract renewed.The Victoria Derbyshire programme broke the story and shortly afterwards, the US company Concentrix was told it would not have its contract renewed.
HMRC has yet to comment on the claims.HMRC has yet to comment on the claims.
But in a statement, Concentrix said the announcement had come "as a significant shock" to the firm.But in a statement, Concentrix said the announcement had come "as a significant shock" to the firm.
The statement added: "Disappointingly (it) did not give us the opportunity to communicate appropriately with our staff ahead of the announcement.The statement added: "Disappointingly (it) did not give us the opportunity to communicate appropriately with our staff ahead of the announcement.
"We are engaged with HMRC to fully understand the implications of this announcement and in the meantime we are exploring all options for our staff within Concentrix.""We are engaged with HMRC to fully understand the implications of this announcement and in the meantime we are exploring all options for our staff within Concentrix."
The £75m deal between ministers and Concentrix, signed last May, has been aimed at trying to save the government more than £1bn in incorrect or fraudulent tax credit payments.The £75m deal between ministers and Concentrix, signed last May, has been aimed at trying to save the government more than £1bn in incorrect or fraudulent tax credit payments.
But hundreds of people have complained to MPs that they have been incorrectly punished, while the Facebook group Concentrix Mums has attracted 8,000 members.But hundreds of people have complained to MPs that they have been incorrectly punished, while the Facebook group Concentrix Mums has attracted 8,000 members.
'Difficult''Difficult'
Single mother Nicola McKenzie, 19, told the Victoria Derbyshire programme on Tuesday that she had had her child tax credits stopped after she was wrongly accused of being married to a dead 74-year-old man.Single mother Nicola McKenzie, 19, told the Victoria Derbyshire programme on Tuesday that she had had her child tax credits stopped after she was wrongly accused of being married to a dead 74-year-old man.
On the same day as the story broke, the news about the company's contract ending next May was revealed.On the same day as the story broke, the news about the company's contract ending next May was revealed.
A source told the BBC the two sides had been "close to" reaching an agreement before the show aired and that Concentrix had only learned of a change of heart about an hour before the government announced it would not be renewed.A source told the BBC the two sides had been "close to" reaching an agreement before the show aired and that Concentrix had only learned of a change of heart about an hour before the government announced it would not be renewed.
The BBC understands that talks between government officials and Concentrix on Thursday will focus on the best way to bring the deal to a close with minimal further disruption to tax credits - payments made to households on low incomes.The BBC understands that talks between government officials and Concentrix on Thursday will focus on the best way to bring the deal to a close with minimal further disruption to tax credits - payments made to households on low incomes.
Concentrix said: "We recognise that individual tax credit claims can be difficult for all concerned. We adopt a rigorous process at every stage to ensure we manage this responsibly in full accordance with guidance set by HMRC." Concentrix said it had been "contractually obligated to contact individual tax credit claimants based on information provided by HMRC. The case volumes handled by Concentrix are set by HMRC and agreed with them in advance."
HMRC said: "We want to reassure customers who have had their tax credits stopped that we will prioritise their cases and make sure that they are processed as quickly as possible.HMRC said: "We want to reassure customers who have had their tax credits stopped that we will prioritise their cases and make sure that they are processed as quickly as possible.
"That's why we have decided not to extend our contract with Concentrix and HMRC is redeploying 150 staff so that customers can get through to advisers and resolve any issues about their claim.""That's why we have decided not to extend our contract with Concentrix and HMRC is redeploying 150 staff so that customers can get through to advisers and resolve any issues about their claim."
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.