Labour are calling for an urgent investigation in to Concentrix’s activities to seek urgent clarification that HMRC are fulfilling their obligations to the British public.

Labour forced a U-turn on proposed cuts to Tax Credits last year and now it looks like the Tories have been caught trying to make further savings via the backdoor as the US firm Concentrix have been accused of incorrectly withdrawing tax credits from hundreds of claimants.

Labour welcomes today’s announcement from HMRC that the Concentrix contract will not be renewed. This is clearly an issue of importance to the public finances and raises questions as to the value for money for the tax-payer.

Rebecca Long Bailey MP, Labour’s Shadow Chief Secretary to the Treasury, said:

“MP’s are being approached by growing numbers of distressed people in their constituencies who appear to have been unfairly targeted by SYNNEX-Concentrix. In many cases Tax-Credits have been completely stopped by the company.

"These people are being forced to use food banks in many cases and live in desperation as a result of quite often absurd and mythical allegations which have been levelled against them.

"It looks like the Government have used Concentrix to make cuts to Tax-Credits via the backdoor.”

“We’re pleased their contract isn’t being renewed however the service provided will continue until 2017. Labour therefore is calling for the Government and HMRC to investigate concerns as a matter of urgency and as a result implement measures to avoid causing further unnecessary anguish.

"Only a week after the Finance Bill where the Tories chose to cut Corporation Tax and Capital Gains tax benefiting only a wealthy few, whilst doing little to help the many, it’s time they really started to help the majority of people in Britain.

"Rectifying the terrible injustices we have heard about in connection with SYNNEX-Concentrix would be a good start.”