Concentrix, the company that checks tax credit entitlements for HMRC, has lost its contract after accusations of failures.
It is claimed the US firm made several mistakes and hundreds of people had their tax credits incorrectly cut.
Concentrix won the £75 million contract in May last year, and the Treasury says it knows of 120 cases since October 2015 where the performance standards laid out in the contract have not been met, according to the Mirror.
HMRC’s chief executive, Jon Thompson, 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.
“While it’s right that we ensure that tax credits customers only receive the money to which they’re entitled, it is vital that those customers have a high level of service,” Mr Thompson added.
“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 Government has said Concentrix will not be paid for wrong decisions, the BBC reported.
Commenting on HMRC’s decision not to renew Concentrix’s contract for the handling of tax credit claims, Labour MP Frank Field said: “Concentrix’s reign of terror is drawing to a close. Again the Government has acted decisively in protecting vulnerable Britain.
“This holds out huge prospects and, for some exploiters, horror, in the near future.”
Mr Field this week called on the Government to investigate and act on concerns around Concentrix’s handling of tax credit claims.
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