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

Executive Director of Place

Hounslow London Borough Council
£159,840 - £186,282
We are now seeking a new Executive Director of Inclusive Growth & Place to lead this bold agenda Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Revenue Services Support Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£28377 - 36969 per annum
We have a vacancy in our Rent Collection Service and are looking for a capable and ambitious individual to join Richmond and Wandsworth Council’s Better Service Partnership. You will be a team player, articulate and organised and help play a central rol Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Benefits Assessment Officer

West Northamptonshire Council
£34203 - £37067
Join West Northamptonshire Council and help make our community a great place to live, work, and thrive. As a Benefit Assessment Officer, you’ll play a vital role in supporting residents by ensuring Housing Benefit and Council Tax Reduction claims are pr Northampton
Recuriter: West Northamptonshire Council

Head of Facilities Management

Redbridge London Borough Council
£89,037 - £92,538
Our borough is beginning a huge transformation. With ambitious regeneration plans, a need for new infrastructure, Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Protection, Licensing and Regulatory Services

Redbridge London Borough Council
£competitive
This is your chance to be part of a new management team with a mandate for change and a shared sense of purpose. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council
Linkedin Banner