Firm hired to cut fraud ditched after 'reign of terror'
An American company brought in to cut fraud and error in the benefit system will not have its contract renewed following complaints it wrongly cut payments to hundreds of claimants, HM Revenue and Customs has said.
HMRC chief Jon Thompson said Concentrix's contract to reduce fraud and error in the tax credits system would not be extended when it comes up for renewal in May 2017.
He said that while it was important to ensure payments only went to those who were entitled to them, claimants were entitled to expect a "high level of service".
The Government had been urged to investigate following a sharp rise in complaints from claimants that they were wrongly having their benefits stopped.
In one case a teenage mother complained her payments had been cut after she was wrongly said to have been married to a 74-year-old man who was dead.
Labour MP Frank Field said: "Concentrix's reign of terror is drawing to a close."