Minutes of the Tax Credits Consultation Group Meeting

Held on Wednesday 18 January 2006 at 22 Kingsway, London WC2

Attendees

Representatives

Liz Lathwood (CIOT)
Anita Monteith (ICAEW)
Kate Bell (One Parent Families)
Joyce Humphrey (TaxAid)
Jane Hayball (LGA Greenwich)
Fran Robinson (LGA Lancashire)
Beth Lakhani (CPAG)
Robin Williamson (LITRG)
Andy Platt (NAWRA)
Katie Lane (Citizens Advice)
Helen Apperley (CAB Cannock)
Lindsay Isaacs (Citizens Advice Scotland)

HMRC

Nigel Jordan (Chairman), Christine Fox, Irenka Timlin, Alison Evans, Keith Golding, Alex Bellis, Mick Ney, Joanne Miller, Daphne Hooper, Liz Welsh, Pete Morton, Jude Hillary, Victoria Hughes, Louise Clayton, Alison Dyer (secretary)

DWP

Roger Pugh, Julie Munt

HM Treasury

Nick Burkitt

Apologies for absence were received from Jane Moore (ICAEW), David Kinloch (LGA) and Vince Groome (HMRC).

1. Customer Needs

Liz Welsh handed out a paper on HMRC’s initial thinking on customer groups and their needs to:

• facilitate discussion with stakeholders,
• help inform further work to segment customers, identify the right customer service provision for them and ensure they get the right outcomes.

She also handed out an update of the work of HMRC’s Individuals Customer Unit.

Representatives’ views on this work will be welcome and should be sent to Liz, Nigel Jordan or the secretary.

2. Local Face to Face Service from HMRC

HMRC outlined changes being made to their face to face service and the reasons for them. HMRC are looking to maintain a strong commitment to providing face to face service for those who need it and extending it where possible.

From January Enquiry Office services are being transformed. HMRC recognise that some customers need face to face contact, but, otherwise, people will be encouraged to use telephone or online facilities. Essentially, Enquiry Centres will have an appointment system which will alleviate any problems with queuing.

Upon arrival at an Enquiry Centre a customer will be greeted by a floorwalker who will try to assess the customer’s need and how best to address it - by directing the customer to the telephone or a computer or arranging an appointment. People with urgent enquiries, as identified by the floorwalker, will get an immediate appointment. Others will get appointments later in the day, or when convenient. This system will not only remove queuing, but also alleviate tensions, allow advisers to provide a better service, improve the customer experience and better manage peaks and troughs. HMRC stressed the new service is not about closing Enquiry Centres (although some will close) or cutting services, but redesigning delivery. He also said that face-to-face service would be maintained where an office closed.

The change is being introduced in stages.

A representative drew attention to the problem of wrong entries for Inland Revenue/HMRC in telephone directories. HMRC confirmed they are working on improving these.

3. Sure Start Maternity Grants

A member of DWP’s policy team that deals with Social Fund issues and the take-up of Sure Start Maternity Grants (SSMGs) attended the meeting. Representatives were concerned that not all the right people were being reached.

One representative suggested putting more information on the HMRC website about SSMGs (as well as direct links to information, rather than to a copy of a leaflet that has to be scrolled through) and making claimants aware they could claim tax credits before they get Child Benefit.

Representatives said there was a need for information to be improved on reclaiming SSMG when the tax credits decision is made. It was also suggested there should be a box that claimants could tick to indicate that they are awaiting an in-year revision decision on tax credits.

HMRC said they thought that SSMG issues could be further considered by the new working group that has been set up to look at passporting issues.

4. Other Dwp Issues

Roger Pugh said that following a National Audit Office report on benefits complexity, DWP had set up a Benefits Simplification Unit. As part of its work the team will want to consult representatives.

National Insurance numbers (NINos)

The NINo allocation figure is currently running at less than two weeks’ work, which is considered a normal head of work.

Better Off Calculator

DWP and HMRC are to meet to discuss improvements, both in the short and long term, in the way calculators are used (including training, support and advice to customers). DWP have a user group which would like more external input. Representatives have been asked to nominate people or to send in observations. They would also like to have an HMRC representative.

5. Pre Budget Report

Nick Burkitt explained that the package of measures included in the Pre Budget Report were based on lessons learned over the last two years. The measures addressed overpayment issues and will provide more certainty for claimants. Regulations are being written, Parliament will debate changes and there will be committee hearings.

Representatives wondered if flyers about additional payments could be issued (as was done previously in 2004).

One representative asked if leaflet WTC2 was being revised to reflect the PBR changes. HMRC said they would check.

One representative referred to the 80% take-up in the first year and asked if details were available at Local Authority level. HMRC said they would be publishing take-up figures around April, but these might only be at regional level.

6. Working Groups - Updates

Code of Practice 26

HMRC said they were considering representatives’ comments and options. The aim was for the Paymaster General to agree the draft revised version of Code of Practice 26 and for it to be published on the website as soon as possible.

Complaints and Redress

A meeting was held in December at which proposals for reorganising the Tax Credit Office’s handling of complaints was discussed. TCO would be aiming to deal with cases within three weeks and the complainant would be given the name and contact details of the caseworker responsible for resolving the complaint.

Appeals

A meeting of the working group was held on 28 November and progress continues to be made. An updated action plan has been sent to members of the working group and there will be a further meeting on 30 January.

Representatives suggested there should be an appeals database, capturing the reasons for appeals and the outcomes, particularly those that do not progress to the tribunal, but are “settled by agreement”.

Website

HMRC said they were hoping to have consolidated legislation on the website starting in April and that it would continue to be updated thereafter.

Milk Tokens

It was suggested that this working group be subsumed into the passporting working group. Representatives were concerned about cases where claimants receive manual payments.

Passported Benefits

The first meeting of the group was held on 16 December. Issues raised included milk tokens and the Social Fund. A second meeting, to which representatives from the Department of Health and DWP will be invited, is being arranged.

Disability Living Allowance

Proposals have been made to look at internal processes to see if there are any opportunities to make improvements that can be taken forward.

7. Issues Log

Representatives were welcome to make comments with a view to making the Log a more manageable document.

HMRC invited representatives to let them know of any concerns and issues they currently had with the authorisation process and what developments they would like to see. They would keep the Group updated on progress.

8. Any Other Business

Intermediaries Helpline

Representatives had said at the previous meeting that a number of their advisers had reported that they were frequently hearing an engaged tone or ‘busy’ message when calling the intermediaries’ helpline. HMRC said they started investigating this and would give an update at the next meeting. HMRC reminded representatives that they can help the intermediaries helpline to manage its workload if calls can be made before 10.00am or after 2.00pm, where possible.

Working with the voluntary sector

One representative asked what work was being done with the voluntary sector. HMRC said they were currently in discussions and were having a meeting the next day to discuss ideas for trials which would take place over 12 months, starting in April.

Pro-active customer contact

One representative asked if the Helpline scripts and letter for the third wave of pro-active customer contact would make it clear that claimants can get additional payments if their income has gone up. HMRC said the scripts and letter have been amended.

Representatives were disappointed that this was going ahead, but Nigel Jordan said that the new rules on additional payments would be in place by the time the pilot took place.

Award notices

Representatives reminded HMRC that they had asked for more comprehensive versions of the new award notices at the last meeting and a further meeting had been suggested by HMRC. Representatives were particularly interested to have a sample award notice where there is in-year and cross-year recovery. HMRC agreed to look into this again. (Post-meeting note: such a sample is not currently available.)

9. Next Meeting

The next meeting would be held on Wednesday 15 March 2006, starting at 10.00am, in the Conference Room, 3rd Floor, 22 Kingsway, London WC2.