How does the HMRC affect the financial hardship of claimants? Research Seminar and workshop

Description of impact

Research workshop based on my research. The workshop was designed to teach HM Treasury and HM Revenue and Customs Senior Officials how the HMRC's administration of the tax credit system effects the financial hardship of tax credit claimants. The workshop was delivered at Manchester Business School on 13/01/2017

Impact Summary for the General Public

This research seminar and workshop addresses the effects of the administration of the tax credit system by HMRC officials and how this system negatively affects the financial hardship of claimants. The aim of the event is to inform senior HM Revenue and Customs and HM Treasury officials and policy makers in order to improve and develop current government policy.

Description of the underpinning research

The new tax credits system was designed to play a key role in achieving the government’s aims of reducing child poverty, encouraging work incentives for the unemployed and low-income earners and to provide financial support for low-income working families. This research finds that in reality, its operation caused masses of overpayments and severe financial hardship for claimants. a third of all tax credit claimants suffered an overpayment who found themselves having to repay some or all of their tax credit income back to the HMRC. This not only caused extreme financial difficulties but also led to many claimants experiencing considerable uncertainty as they lived in fear of receiving future tax credit overpayments if they carried on claiming, causing some to refrain from claiming tax credits. These outcomes of the tax credit system go against the government’s aims to alleviate financial hardship for low-income families. This research explores the experiences of both tax credit claimants and officials and illuminates the causes and problems for why the tax credit system does not achieve its main government aims. This research is beneficial to key policy makers, senior and front-line HMRC officials in order to develop and improve policy and its administration. As a result, this research improves the experiences of both officials and claimants, with the ultimate aim of alleviating further financial hardship and stigmatisation of claimants.

Beneficiaries and reach of impact

Government; Policy Makers; HM Revenue and Customs, HM Treasury; Tax Credit Claimants; Citizens Advice Bureau; Local Members of Parliament

Impact status	Potential
Impact date	13 Jan 2017
Category of impact	Policy and Public Services, Economic, Societal
Impact level	Engagement