by Felicity Collier

THOUSANDS of low-income families who had their tax credits cut by disgraced US firm Concentrix will have their cases reviewed, HMRC announced today.

The privateer was sacked by HMRC last year after numerous complaints from MPs and exposés in the media that claimants wrongly had their benefits cut.

Concentrix had originally been contracted to reduce rates of fraud and error within the tax credit system.

A report by the government revealed that of 36,000 claimants who lodged an initial appeal against a ruling by Concentrix, 87 per cent have since had their benefits reinstated.

A further 23,000 whose benefits had been cut by the company — but who did not appeal — will also have their cases reviewed, the report said.

Shadow chief secretary to the Treasury Rebecca Long-Bailey MP said: “Some families have suffered extreme hardship, poverty and stress as they saw their tax credits cancelled for supposedly living with fictitious characters.”

The review follows a report made by the Commons work and pensions committee, which stated that right from the outset claimants had found the system was “stacked against them.”

Committee chairman Frank Field described the process of challenging a wrong decision as “prohibitively daunting” and “document-heavy,” particularly for those “who were unwell, lacked self-confidence or had caring responsibilities.”

The report found that the “merest hint” that a claim contained more than a “zero risk” of fraud or error was enough to trigger a check. Those who did or could not reply were treated as guilty, it said.

Ms Long-Bailey said: “This is a damning indictment of the Tories’ desire to outsource HMRC services to private organisations whose primary focus is profits.”

In its reviews, HMRC said it will investigate whether decisions were properly made and communicated.

Public-sector union PCS general secretary Mark Serwotka said: “The profit motive has no place in our tax and welfare systems. Government departments must now look to bring contracted work like this back in-house.”

It is expected the case reviews will be completed by March.

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