HMRC Performance Represents Poor Value For Money, NAO Reports

A report by the National Audit Office into the customer service performance of HM Revenue and Customs has concluded that its current performance represents poor value for money for customers.

The report recognises that HMRC has restored customer service levels from a low point in 2010, when problems with the new National Insurance and PAYE system increased the number of queries. HMRC has now dealt with long-term backlogs by employing 2,500 temporary staff, enhancing phone technology and improving productivity.

In 2011-12, HMRC answered 74 per cent of phone calls, against an interim target of 58 per cent. This level of service is nevertheless low.

Amyas Morse, Head of the National Audit Office, said: "The taxpayers and claimants who phone HMRC do not have a choice about whether they interact with the department. Despite some welcome improvements, HMRC has acknowledged that its performance in providing services to the public has been unacceptable.

"HMRC faces difficult decisions about whether it should aspire to meet the service performance standards of a commercial organization. It could do only by spending significantly more money or becoming substantially more cost effective."

So far in 2012-13, HMRC has improved its handling of post but its performance in handling calls has been varied. However, in October 2012, HMRC answered 91 per cent of calls, its highest monthly performance since December 2009.

Customers who got through to HMRC in 2011-12 had to wait on average 282 seconds to speak to an adviser. Between April and September 2011, 6.5 million customers waited more than ten minutes to have their call answered. Depending on the tariff they pay their phone company, customers are charged from when their call is connected even if they are held in a queue. The NAO estimates that it cost customers £33 million in call charges while they are in the queue. The estimated value of customers’ time while they are in the queue is £103 million.

(CD)