HMRC is to sever ties with Concentrix, the firm contracted to check claimants’ tax credits entitlement. The contract with the US business services entity runs out in May 2017 and will not be renewed. Both organisations will now be focused on clearing the outstanding cases. HMRC is redeploying 150 staff to help with this.

HMRC’s chief executive, Jon Thompson, said: ‘While it is right that we ensure that tax credits claimants only receive the money to which they are entitled, it is vital that those customers have …