The Low Incomes Tax Reform Group (LITRG) report a significant spike in the last two weeks in contact from tax credit claimants who are unable to get through to the main Concentrix helpline number.

LITRG says its research shows that while HMRC’s helplines have been steadily improving since the middle of 2015/16, call waiting times to Concentrix have dramatically worsened. In the past fortnight, it has had reports of people unable to get through on the main Concentrix helpline number. Some people are faced with an engaged tone, whilst others report being on hold for up to an hour before eventually giving up.

John Thompson, HMRC’s chief executive, has announced that the Concentrix contract will not be renewed when it ends in May 2017, and has drafted in 150 HMRC staff to help sort out the backlog of calls.

LITRG said: ‘The action now taken by HMRC should ensure that the helplines are better equipped to cope with the increased demand. In the interim, HMRC should ensure that Concentrix do not suspend or stop tax credit payments until both the postal delays and the telephone line issues are brought up to an acceptable standard.

LITRG says it is aware and has made representations to HMRC about problems with poor service levels dating back to the start of the contract with Concentrix taking effect in November 2014.

The group has produced a question and answer guide on its website to help tax credit claimants who have received a letter from, or are struggling to contact, Concentrix.

Anthony Thomas, LITRG chairman, said: ‘We hope our question and answer document will help those who have had their payments stopped to get them reinstated where that is appropriate, and those who are experiencing hardship because they cannot get through to Concentrix to find ways of resolving the difficult situation in which they find themselves.’

In the longer term, LITRG wants to see a published review of the Concentrix contract both in terms of value for money for the taxpayer as well as the performance of Concentrix and the impact on claimants.

‘This will be essential if HMRC decide to continue with a payment by results model of working with private companies in future. No doubt this could be an issue for consideration by the Public Accounts Committee in due course,’ the group said in a statement.

Concentrix is estimated to have carried out around 667,000 checks on behalf of HMRC into tax credit payments since November 2014.

LITRG’s Q&A on Concentrix advice is here.