Source · Select Committees · Public Accounts Committee
Recommendation 6
6
We are concerned that HMRC is not doing enough to identify vulnerable people who need...
Conclusion
We are concerned that HMRC is not doing enough to identify vulnerable people who need extra support with their debts. The pandemic has left more people in vulnerable positions, such as managing serious illness, bereavement and with low resilience to financial shocks. The Financial Conduct Authority has reported a 15% increase in the number of adults who met one of their characteristics of vulnerability. Yet HMRC has not seen an increase in the number of customers it identifies as being vulnerable. Around 1,400 customers currently access help from its Extra Support Team, a tiny fraction of the 6.2 million customers with tax debt. HMRC is adopting the vulnerability toolkit developed by the Cabinet Office to better identify vulnerable customers. However, we are concerned that, despite this, HMRC may be failing to identify vulnerable people, and that it may therefore fail to provide them with extra support because it doesn’t understand actual need. HMRC acknowledges that the number of vulnerable customers it has identified looks lower than it would expect and that the take-up of some of its offers of support, such as the Breathing Space scheme, is low. 8 HMRC’s management of tax debt Recommendation: HMRC should ensure regular and adequate training is in place for staff and it should carry out research to independently estimate how many vulnerable people are affected by tax debt and how effectively it is identifying those customers and write to us with its findings. HMRC’s management of tax debt 9 1 HMRC’s capacity and capability to manage increased tax debt
Government Response
Not Addressed
HM Government
Not Addressed
6: PAC conclusion: We are concerned that HMRC is not doing enough to identify vulnerable people who need extra support with their debts. 6: PAC recommendation: HMRC should ensure regular and adequate training is in place for staff and it should carry out research to independently estimate how many vulnerable people are affected by tax debt and how effectively it is identifying those customers and write to us with its findings. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2022 6.2 The government agrees it is important to provide appropriate support to people who have a physical or mental health condition or are in difficult personal circumstances. The commitment to improve the support provided to these individuals is outlined in The HMRC Charter. 6.3 The majority of people who need some support or reassurance will be helped by HMRC staff without needing to be referred to the Extra Support Team. Only where HMRC staff identify the person has more complex needs will they refer them to the Extra Support Team. 6.4 HMRC will refine its mandatory training and guidance to identify people who need extra support and make prompt referrals to the Extra Support Team. All training and guidance are regularly reviewed to identify opportunities for improvement. 6.5 HMRC will continue to build its understanding and insight on people who need extra help. Working with the voluntary and community sector, HMRC is exploring opportunities to improve identification and handling of contact from people with emotional and mental health issues. 6.6 HMRC will identify independent research which will help estimate how many people could potentially be eligible for extra support, and how they may be better identified. The insight HMRC has developed already, shows that people move in and out of vulnerable situations. They also know some people will not engage with HMRC for support for a variety of reasons. 6.7 HMRC will continue to review take-up of the Extra Support Team and improve communications to raise awareness of the service.