Sefton Central Labour MP, Bill Esterson commented on the news that Concentrix would not have their contract for managing parts of the social security system renewed by the government.
Bill Esterson MP welcomed the news that the firm’s contract was being cancelled. However, Mr Esterson said that with 18 months still to run, those people facing hardship through the cuts being imposed by Concentrix would still suffer as a result. He said the government had a responsibility to make sure that people who need tax credits to survive were paid on time.
Bill Esterson said, “The hiring of Concentrix has been an abject failure by the Conservative Government, a failure which has severely affected those who rely on their tax credit throughout the U.K. I have had reports from my own constituents being forced into financial hardships and even needing the intervention of food banks. These are people who are in work, people on low incomes and parents. And remember it is the children of those families whose tax credits have not been paid who suffer most. What is happening is an outrage to everyone in the UK.
It is good to see with the pressure of the media coupled with the hard work of Labour MPs Frank Field and Louise Haigh that the Government have announced they will not be renewing Concentrix’s contract.
But this is not enough. Concentrix have not had their contract withdrawn, they’ve merely been told it will not be renewed in the future. The company’s contract should be revoked immediately, with Concentrix still in place thousands more tax credit recipients currently face severe hardship and the need to go to foodbanks to just survive.
The Government needs to remove Concentrix, and ensure any replacement company does not follow this damaging ‘payment-by-results model’ the Conservatives implemented. To have a Tax fraud company receive more money the more cuts made is immoral. To incentivise cuts is to dehumanise claimants.
I, along with my Labour colleagues, will keep pressuring the Government until this issue is resolved. Until those who should rightfully claim, can rightfully claim. The tax credit system is there to make sure people in work can make ends meet. It is to make sure that work pays. The way the Conservatives have run the system and used Concentrix has put many hard working families at risk and it must stop.”