23 June 2023
The Adjudicator's Office annual report 2023 has been published. The Adjudicator’s Office (AO) investigates complaints about HM Revenue and Customs (HMRC) and the Valuation Office Agency (VOA).
The role of the Adjudicator was created in 1993 to introduce an independent tier of complaint handling for HMRC and the VOA. The AO will consider if the organisation has applied its rules, standards, guidance and codes of practice fairly and consistently. Decisions are based on the factual evidence of the complaint or review request. AO provides a free, impartial and independent service and investigates all complaints within their remit. The Adjudicator expects HMRC, the VOA and Home Office to apply skill and understanding to their complaint handling.
It has been reported that during the reporting year the AO received 950 complaints about HMRC for investigation. This compared to 1029 last year. The upheld rate (including fully and partially) increased to 47%, an increase of 15%. During the year 2022/23 the Adjudicator resolved 630 complaints from HMRC customers. The number of complaints partially or fully upheld was 293, 41 more than in 2021/22.
The Annual Report states that HMRC’s complaints performance has still not fully recovered from post pandemic disruption. Although HMRC has recovered in areas, there are still significant backlogs in others where high-volume complaints are not expected to recover until well into next year.
Adjudicator, Helen Megarry, said:
‘‘We continue to receive high numbers of complaints from customers who have not managed to complete HMRC’s internal complaint process. Increasing numbers of customers, often vulnerable, are stuck in the system for long periods with little or no meaningful response from HMRC. Although we understand the context of operational resource pressure because this is an issue that we have given feedback on before, we undertook further research into those cases. We have fed back to HMRC our insight into the issues that contribute to this ongoing poor complaint handling.
I do not underestimate the task that lies ahead but having come so far, the prize will not materialise without comprehensive plans to implement and embed change, including addressing culture. I recognise the constant pressure that HMRC is under, delivering service on a massive operational scale while responding to an ever-changing landscape, significant economic pressure and delivering on its transformational agenda.’’
The report further expresses that this year has seen HMRC recover its service standards post-pandemic with varying degrees of success. Customer Services Group have struggled with volume and also significant pressure on resources. This means that the recovery has slipped and is therefore ongoing.
In the Customer Compliance Group, recovery has been quicker. This means that there is a two-tier level of service being provided in HMRC, depending on where a complaint sits. As much as the Customer Compliance Group is applauded, the Customer Services Group is urged to prioritise the recovery to parity and to use, just as Compliance Group did, the Charter as the benchmark for great customer service. In doing so, this allows better understanding that complaints have been supported, by ensuring resource is prioritised in this crucial customer-facing area.
Head of Office, Mike McMahon, said:
‘‘HMRC have tough decisions to make as it manages its resources. It is clear that the Department is expected to do more with less, and this is especially apparent in Customer Services Group. But I firmly believe that customer-focused decisions now will pay dividends in the future and would urge HMRC to view improvements as part of a long-term strategy.’’
HMRC stakeholders, commented on the feedback given on the corporate aims:
‘‘HMRC’s senior leaders have endorsed the Adjudicator’s proposal to use insight from complaints to hold us to account on delivery of the Charter standards.’’
‘‘HMRC welcomes the Adjudicator’s departmental improvements (including) their internal restructure and improved reporting process allowing them to further enhance their Learning from Complaint offer and achieve their ambition to become a learning organisation.’’
‘‘HMRC values the Adjudicator’s contribution at the Customer Experience Committee (and) HMRC’s Complaint Strategy and Insight Board which continues to ensure coherence between customer complaints, wider customer experience issues and HMRC’s strategic objectives.’’
‘‘HMRC are encouraged by the work undertaken by the Adjudicator’s office to continuously improve the way data and actionable insight is provided. This has provided better learning from complaints at all levels across HMRC.’’
HMRC published its formal response to the Adjudicator’s last Annual Report in November 2022 and is committed to publish a response to this report by autumn 2023.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.