William Eichler 12 January 2018

‘Under pressure’ HMRC threatens welfare claimants, MPs warn

MPs have warned HMRC’s attempts at modernising amount to a ‘precarious high-wire act’ that threatens welfare claimants.

A report from the Public Accounts Committee (PAC) published today warns HM Revenue & Customs has to make ‘tough decisions’ on how it allocates limited resources to its operations.

HMRC is currently undertaking 15 major transformation programmes, all while preparing for Brexit.

The committee is concerned this will have a negative impact on the taxpayer and, in particular, questioned whether HMRC is doing enough to support vulnerable Tax Credits recipients, especially as they transfer to Universal Credit.

The MPs also said there was a lack of incentive for HMRC to reduce Tax Credits fraud and error in the transition period to the benefits system.

‘HMRC's transformation programme would have been less risky had it not attempted to do everything at the same time,’ said the committee chair Meg Hillier MP.

‘What was already a precarious high-wire act is now being battered by the winds of Brexit, with potentially catastrophic consequences.’

‘HMRC accepts something has to give and it now faces difficult decisions on how best to use its limited resources—decisions that must give full consideration to the needs of all taxpayers,’ continued Ms Hillier.

‘In particular we are concerned about the effect on people simply trying to pay their fair share. HMRC’s customer service has improved on the appalling levels of recent years but its claims about call-answering times don’t stack up. Any new deterioration would be wholly unacceptable.

‘There are concerns too about the impact of changes in the welfare system, which could increase the financial risks faced by vulnerable Tax Credits claimants. At the same time, the level of Tax Credits fraud and error has gone up and is only going to get worse.

‘These are serious, pressing challenges for HMRC, requiring swift and coordinated action in Government. As a matter of urgency the authority must set out a coherent plan and demonstrate it is fit for the future.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Product Manager - Social Care

Essex County Council
£63323.0000 - £74497.0000 per annum
Senior Product Manager - Social CareFixed Term, Full Time£63,323 to £74,497 per annumLocation
Recuriter: Essex County Council

Assistant Traffic Management and Road Safety Engineer

North Yorkshire Council
£29,064 - £34,434 per annum
Are you interested in a career in traffic engineering and would love the opportunity to learn whilst you earn? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Road Safety Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
Are you looking for a role that can make a real difference to road safety and people’s lives in North Yorkshire? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Quantity Surveyor

Royal Borough of Greenwich
PO4 - £49,056 - £52,194
The Royal Borough of Greenwich Repairs and Investment Section Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Social Work Assistant

Durham County Council
Grade 6 - £28,142 - £31,022
The Team provides an effective and efficient Assessment and Care Management service to adults 18 years and over with a physical disability, older peop Durham
Recuriter: Durham County Council
Linkedin Banner