Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
HMRC’s post and call handling performance fell significantly during the pandemic.
Recommendation
HMRC’s post and call handling performance fell significantly during the pandemic. For example, in 2021–22 HMRC responded to 39.5% of post within 15 days, compared to 70.3% in 2019–20. The average speed of answering calls to HMRC helplines was 12:22 minutes in 2021–22, compared to 6:39 minutes in 2019–20.19 The Chartered Institute of Taxation submitted evidence to us that highlighted concerns about the difficulties both advisers and taxpayers face getting timely responses and action from HMRC.20 HMRC said that its ability to manage shocks such as the impact of COVID-19 was impacted by reductions in staff: in the last five years its number of customer service staff has reduced from 25,500 to 19,500 as HMRC has moved more customers to digital systems.21 We raised concerns that this reduction in staff was premature and were effectively cuts rather than efficiency savings. HMRC said that it had achieved efficiencies, but that the additional pressure of responding to the pandemic meant that performance had suffered, for instance through a backlog of 3.3 million items of post building up. HMRC sees further digital improvements as key to moving customers away from phone and post and making further efficiencies.22 Beyond what it has already planned, it said it would be difficult to deliver any new efficiencies before 2024–25.23
Government Response Summary
HMRC will write to the Committee in April 2023 setting out its plan to improve customer service including metrics to monitor performance, the level of service taxpayers and agents can expect over the next three years, how it will support customers who cannot engage digitally, and contingency arrangements.
Government Response
Accepted
HM Government
Accepted
5: PAC conclusion: Taxpayers and their agents are still not receiving an acceptable level of customer service 5: PAC recommendation: HMRC should write to the Committee setting out its plan to improve customer service to adequate levels as quickly as possible, and within three months, including: • the metrics HMRC will use to monitor its customer service performance, including metrics it needs to demonstrate it can answer calls and deal with post in a timely manner; • the level of customer service taxpayers and their agents can expect to receive over the next three years against each of these performance metrics; • how it will support customers who are unable to engage digitally or have a preference for post or telephone contact; and • its contingency arrangements if its plans to reduce demand for traditional channels are unsuccessful or take longer to implement. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2023 5.2 HMRC accepts this recommendation and will write to the Committee in April 2023. 5.3 The metrics that will be used to monitor customer service performance will be published externally in HMRC’s 2023-24 Outcome Delivery Plan in line with guidance from Cabinet Office and HM Treasury 12 5.4 HMRC publish quarterly and monthly performance updates against key customer service metrics which will continue to be updated.