Welfare Tax Credits: Debt Collection

Treasury written question – answered on 14th October 2020.

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Photo of Patrick Grady Patrick Grady SNP Chief Whip

To ask the Chancellor of the Exchequer, how much his Department has spent on private debt collection agencies in (a) fees and (b) the proportion of funds collected for the purposes of recovering tax credit debts in each financial year since 2010-11.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

The table below details HMRC’s spending on Debt Collection Agencies between 2010/11 and 2019/20.

None of the funds collected are used for the purpose of recovering tax credits. HMRC request funding from HMT through fiscal measures.

Total

% Spent on TC

2010-11

£ 3.72m

0.00%

2011-12

£ 11.08m

0.00%

2012-13

£ 13.06m

0.00%

2013-14

£ 9.34m

11.61%

2014-15

£ 10.89m

19.85%

2015-16

£ 16.77m

31.59%

2016-17

£ 26.25m

24.54%

2017-18

£ 32.10m

20.50%

2018-19

£ 26.02m

28.83%

2019-20

£ 26.16m

24.03%

Total

£ 175.39m

20.16%

Further information about payments to Integrated Debt Services Ltd, who manage the contract between HMRC and the Debt Collection Agencies contracted to act on HMRC’s behalf, is published on GOV.UK: https://www.gov.uk/government/collections/spending-over-25-000.

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