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

Educational Psychologist

North Yorkshire Council
From £47,688 up to £57,954 per annum pro rata, plus relocation support up to £8,000
Are you an EP who is interested in making real change for children, young people, families and schools, at individual and systems level? Selby, North Yorkshire
Recuriter: North Yorkshire Council

Senior Children Residential Short Breaks Worker

North Yorkshire Council
£34,434 up to £38,220 per annum pro rata
Join us at Cherry Tree Lodge Children’s Resource Centre as we empower and support children and young people Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Locality Team Manager for Disabled Children's Services

North Yorkshire Council
£51,356 to £55,539 per annum pro rata
We are looking for a highly motivated and experienced Locality Team Manager to join our Disabled Children and Young People’s Service Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Young carers keyworker

Essex County Council
£25081.00 - £27653.00 per annum
Young carers keyworkerPermanent, Full Time£25,081 - £27,653 per annumLocation
Recuriter: Essex County Council

Head of IT

YPO
£76,999 plus £3,000 car allowance and generous benefits package
As our new Head of IT, you will play a pivotal role in shaping the future of technology across the organisation. North Yorkshire
Recuriter: YPO
Linkedin Banner