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

Director of Legal & Governance (Monitoring Officer)

Hampshire and the Solent Combined Authority
Up to £118,000
The Hampshire & Solent Combined County Authority is being established at pace, bringing together a uniquely complex geography and economy. Hampshire / Hybrid
Recuriter: Hampshire and the Solent Combined Authority

Executive Director of Finance (Section 73 Officer)

Hampshire and the Solent Combined Authority
Up to £150,000
As our first Executive Director of Finance and statutory Section 73 Officer, you will build the financial architecture that makes this possible. Hampshire / Hybrid
Recuriter: Hampshire and the Solent Combined Authority

Managing Director

South London Legal Partnership
circa £140,000
The continued success of South London Legal Partnership (SLLP) is rooted in our shared commitment. London (South), London (Greater)
Recuriter: South London Legal Partnership

Assistant Director

Gloucestershire County Council
£85,838 pa to £94,585 pa
Gloucestershire County Council is seeking a forward-thinking, highly credible senior leader. Gloucestershire
Recuriter: Gloucestershire County Council

Strategic Director of Adult Social Care an

Tameside Metropolitan Borough Council
circa £130,000 p.a.
Are you someone who leads with heart, thinks with vision, and delivers with impact? Tameside, Greater Manchester
Recuriter: Tameside Metropolitan Borough Council
Linkedin Banner