A Dundee MP has accused an American company of “brutally” stripping city residents of benefits.
Dundee West MP Chris Law has submitted an Early Day Motion in the House of Commons regarding Concentrix, the American company contracted by HMRC to investigate potential benefit fraud.
According to single parents charity One Parent Families Scotland, Concentrix carry out automated checks on financial records.
If these show someone registered as a single parent is living with an adult they can stop tax credits.
Investigations can be triggered by things such as bills that are still under a joint name, even though the couple has split up.
One Parent Families Scotland advises anyone who receives a letter from the company demanding more information to respond as soon as possible to avoid disruption to benefits.
However, Mr Law said he has received a number of complaints from constituents wrongly accused of living with a partner and having their tax credits stopped as a result.
Although people can appeal, tax credits are not paid until this lengthy process is completed, leaving people out of pocket for weeks or months.
Mr Law said: “Over the past few months Concentrix have categorically refused to answer my caseworkers on their dedicated hotline, referring them back to HMRC.
“HMRC then have to put a request back to Concentrix for information, meanwhile leaving families struggling to buy food and pay their bills.
“It is beyond belief that this company seem to be answerable to no-one including the UK government.
“The brutal and disrespectful approach taken by Concentrix towards the legitimate needs of my constituents and others around the country must be investigated immediately.”
Mr Law’s motion has been signed by 24 fellow MPs. All but three of them SNP members.
It states people have been “unfairly hounded by Concentrix and accused of cheating the benefits system by being wrongly accused of having a partner living with them and contributing to household income, and have had their tax credits suddenly cut off without warning causing an immense amount of stress and hardship and pushing many families into poverty.”
The HMRC has been asked to comment but had not done so by the time of going to press.