Minutes of the Tax Credits Consultation Group Meeting
Held on 15th March 2006 at 22 Kingsway

Attendees

Representatives:

Liz Lathwood (CIOT)
Robin Williamson (LITRG)
Jane Moore (ICAEW)
Beth Lakhani (CPAG)
Kate Bell (One Parent Families)
Katie Lane (Citizens Advice)
Peter Gravestock (A.T.T)
Jane Hayball (LGA Greenwich)
David Kinloch (LGA)
Fran Robinson (LGA Lancashire)
Lindsay Isaacs (Citizens Advice Scotland)
Joyce Humphrey (TaxAid)
Andy Platt (NAWRA)

HMRC:

Nigel Jordan (Chairman), Linda Lewis (Acting Secretary), Chris Hopson, Liz Welsh, Paul Lanser, Annette Matton, David Skinner, Linda Maslen, Keith Golding, Vince Groom, Chris Fox, Alison Dyer (Secretary), Daphne Hooper, Simon Manclark

HMT:

Nick Burkitt

DWP:

Roger Pugh

Apologies for absence were received from Richard Excell (TUC), Alex Bellis (TCO), Pauline Hunter (Disability Alliance) and Irenka Timlin.

Contents

• Communications Review – Chris Hopson
• The Future Operating Model for Tax Credits- The Customer Offer - Liz Welsh
• Take up statistics
• Update on IT software upgrades
• PBR Changes
• Working Group Updates
• Publicity update
• Any other business

1. Communications Review – Chris Hopson

Chris gave a presentation outlining the approach and emerging findings from 2 strands of research. The presentation outlined the first step of a series of steps to take things forward.

It was agreed that HMRC need various levels in its letters, for example, detailed responses to agents and more simple explanations to claimants. The representatives were pleased to hear this approach was being developed as this is what they have always wanted. This was in the early stages and HMRC were carrying out further work to inform how we need to do things differently for different customer groups.

Representatives suggested we need to look at why communications might cause confusion and suggested that HMRC needed to address this issue.

2. The Future Operating Model for Tax Credits- The Customer Offer - Liz Welsh

Liz circulated papers, marked confidential, outlining early thinking. She would like to invite Representatives to a workshop before the summer where Liz’s work could be explained in more detail and their comments taken on board.

Representatives asked if future policy was to be taken into account. Liz said we needed to work within current policy. Representatives asked for advance warning of any future workshop and papers circulated before hand HMRC promised to ensure plenty of advance notice was given.

3. Take up statistics

HMRC gave a presentation and circulated more detailed statistics regarding take up of tax credits. The presentation explained how they did it, what they found and what his team plans to do next.

• They compared sample of finalised 2003/04 awards with the Family Resources Survey (FRS) and made adjustments for specific groups.
• The key results were that take up figures were very good.
• Take up higher for low income families with children and also higher for CTC/WTC than FIS/TC and WFTC
• Higher for more vulnerable groups
• Lower for families without children

The group debated specific detailed points of the results.

4. Update on IT software upgrades

HMRC advised the group that there was to be another software update in April and computer downtime would be between 5th and 10th April.

Representatives asked for specifics and whether payments would be affected. Vince assured the group that payment schedules had been set up so that people would be paid as normal but the full system would not be available. He would circulate a note to representatives with the specifics of the downtime.

5. PBR Changes

Nick explained the effects of the changes announced in the PBR in November and current thinking on how they could be implemented.

Nick said that, at the May consultation meeting, they hoped to report back from any meetings with the Minister; by the time of the September meeting they hoped to have the guidance written; by October they hoped to lay the regulations.

If the group had any comments they could be passed to Nigel who would send them on to Nick. Nick asked for feedback in 4 specific areas: issues arising from the PBR changes; how detailed calculations on things like working hours should be; what problems there are in these areas in the current system and what areas needed to be looked at when they write or change the guidance.

Nick agreed to attend the next meeting to give an update on his work.

6. Working Group Updates

• Milk Token Working Group
  Representatives were concerned where claimants receive manual payments. HMRC can make special one off system instructions to Department of Health. HMRC asked the group to let them know if they had specific cases they would like them to look at, separately.
• Backdating Working Group
  HMRC apologised for the late distribution of the most recent minutes and will arrange for these to be sent out.
• Award Notices
  Representatives took the opportunity to ask about the most recent award notices. HMRC advised that mock ups had been circulated to the whole group last year and confirmed that the copies shared with the representatives were the same as those placed in the House of Commons library.
  
  More mock ups will be shared with the group when we have them. HMRC had to ensure that any mock ups developed had to be accurate and analysts had to work these up but this had to be balanced with other priorities. HMRC will be working to develop a “standard series” of award notices, which can be modified accordingly.
  
  Discussions centred around the content of the award notice which would include:
  
  
  • A summary
  • personal details
  • details of entitlement
  • payment details
  Representatives also queried whether the payment details would show the rate of recovery of any overpayment (eg 10% or 25%).
  
• COP26
  A further meeting of COP 26 working group had taken place.
  Testing on COP26 took place on 15th and 16th March with consumers.
  The new version will be published on 6 April
• Complaints
  All organisational changes had now been implemented.
  Now operating a caseworker approach, which includes alpha split.
  There will be a named contact and telephone number on letters.
  Representatives asked if this successful approach could be publicised through the Working Together Bulletin.
• Passporting benefits
  Elizabeth Savidge is taking the lead with this group and will arrange a meeting in the near future.
• Childcare
  HMRC has agreed to set up a working group.
  Nigel thanked representatives for volunteering and asked if they could send in their comments to HMRC.
  Representatives advised they have already listed views and would send them.
• Website
  A meeting has been set up for 29th March to pick up outstanding issues and points from the Communications Review. New (updated) legislation should be on website in April. Representatives asked when the E Portal will be opened - HMRC said Ministers will make a formal announcement. HMRC were looking at whether it would be possible to bring back into use the entitlement calculator.
• Appeals Working Group
  Last meeting was 13th January. A further meeting will be held on 4th April and action points will be circulated to the group.
• Disability Living Allowance
  HMRC are working to see if it is feasible to pilot a new approach to act on DWP information.
• Better off Calculation
  Minutes to be circulated from last meeting.

7. Publicity update

• 10th April - Renewals
• 10th April till May - TV adverts
• July – Radio and TV adverts as well as on line to remind people to renew if they haven’t already done so.
• August – adverts over three week period
• Change of Circumstances – targeted marketing activity i.e. child care costs, child leaving/remaining at school
• Eligibility to TC in bounty packs and advertise in parenting press
• Ethnic Minorities – some targeted work this year to reach specific minority communities particularly working with voluntary sector and community organisations.
• Planning to produce a new information pack to support intermediaries. This will contain core information, answers to FAQs. Updates will be produced as appropriate.

8. AOB

HMRC advised that the flyer the representatives had requested to go out regarding additional payments had been issued with award notices since 14th February.

A representative asked if there was a timetable to publish consolidated tax credits legislation on the HMRC website. HMRC advised it was planned that a consolidated version of the Tax Credits Act 2002 should be published in April.

Nigel thanked everyone for their contribution and invited everyone to the next meeting on 17th May 2006

Meeting close