Source · Select Committees · Public Accounts Committee
Recommendation 13
13
As many as 2.9 million people may have been excluded from the first versions of...
Conclusion
As many as 2.9 million people may have been excluded from the first versions of CJRS and SEISS. The NAO found that people were excluded either because of policy design choices or due to constraints in the tax system. An estimated 1.1 million people were excluded from CJRS because HMRC did not have sufficient data to verify claims, whilst on SEISS, 0.2 million missed out because HMRC did not hold enough data about their self-employment. A further 1.6 million were estimated to have been ruled out of SEISS due to not meeting the scheme’s criteria; for example, because they received less than half their income from self-employment.32 We asked the Departments what issues existed that meant people were unable to receive support and how they were working to resolve them. HMRC confirmed that the eligibility criteria for the extended schemes remained broadly the same as the original scheme. It acknowledged that the structure of these schemes meant that those with more casual working patterns were likely to have found it more difficult to qualify for the schemes than those with more regular working hours.33 It said that the schemes had been designed to help as many people as possible but that it simply wasn’t possible to help everyone.34
Government Response
Not Addressed
HM Government
Not Addressed
3: PAC conclusion: The Departments have not done enough to reduce the number of people excluded from the schemes. 3: PAC recommendation: HM Treasury and HMRC should investigate whether more data within and outside of the tax system could be used to determine eligibility for currently excluded groups and write to the committee within six weeks to explain their findings. HM Treasury and HM Revenue and Customs should liaise with departments which have a detailed knowledge of the affected sectors in order to improve access to Covid-19 related support schemes for currently excluded groups. 3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 People may be ineligible for the Coronavirus Job Retention Scheme (CJRS) or the Self-Employment Income Support Scheme (SEISS) due to either policy choices or administrative constraints. On the latter, throughout the pandemic, the departments have had to balance the desire to provide support to as many people as possible, as quickly as possible, with the need to protect public funds from error and fraud. To strike this balance, both schemes were based around using information that HMRC already held and could therefore verify. 3.3 As the schemes have evolved, the two departments have been able to extend support to more people; for example, moving the payroll cut-off date for CJRS, and supporting new parents and reservists. Those unable to access support via CJRS or SEISS may be able to benefit from other measures, including funding given to local authorities. 3.4 The HMRC and HM Treasury 10-year Tax Administration Strategy sets out the departments’ commitments to develop a fully digital tax system that works closer to real time. This includes extending 27 MTD and increasing use of real-time information to give customers and HMRC a more up-to-date understanding of and certainty over a customer’s position. 3.5 The government continues to explore, and discuss with stakeholders, options for best supporting those affected by COVID 19.