Written questions by Leishman.

When HMRC will publish full staffing projections for Managed Service Provider and HMRC customer services staff.

HMRC is currently in an initial proof‑of‑value phase for its use of MSPs, which is helping to inform longer‑term workforce planning. At this stage, HMRC has no plans to publish full staffing projections for either MSPs or HMRC customer services staff.Decisions about future staffing levels will be based on what is learned from the proof‑of‑value phase and will be taken through HMRC’s normal business planning and Spending Review processes.

Whether Managed Service Provider staff and HMRC employees will have differing pay, terms, training and progression.

Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce. This contract was procured through a Government Commercial Agency (previous Crown Commercial Service) framework and meets the stringent controls and standards set by the Agency for Government contracts. This includes ensuring all employment legislation, including National Minimum Wage and Employment Rights Act are adhered to. As Customer Service is skilled work, all suppliers must pay market rates to secure people with the appropriate skills to meet HMRC’s needs. HMRC are not privatising their services. HMRC will continue to deliver the majority of its customer services through its own customer service staff, and overall HMRC staffing levels are expected to increase over the Spending Review period. HMRC can only recruit to known average levels of customer demand or it risks not providing value for money to the taxpayer. Using mixed resourcing approaches, including MSPs, gives HMRC more flexibility to support customers. HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership. HMRC is currently in an initial approximately 18 month ‘proof of value’ phase for its use of MSPs and has no plans to publish full staffing projections for MSPs or customer services staff at this stage. Overall the projected cost for 12 months was approximately £23m of resourcing spend. Future workforce decisions will be informed by the outcome of this phase and taken in line with normal business planning and Spending Review processes.

When HMRC will publish full staffing projections for Managed Service Provider and HMRC customer services staff.

Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce. This contract was procured through a Government Commercial Agency (previous Crown Commercial Service) framework and meets the stringent controls and standards set by the Agency for Government contracts. This includes ensuring all employment legislation, including National Minimum Wage and Employment Rights Act are adhered to. As Customer Service is skilled work, all suppliers must pay market rates to secure people with the appropriate skills to meet HMRC’s needs. HMRC are not privatising their services. HMRC will continue to deliver the majority of its customer services through its own customer service staff, and overall HMRC staffing levels are expected to increase over the Spending Review period. HMRC can only recruit to known average levels of customer demand or it risks not providing value for money to the taxpayer. Using mixed resourcing approaches, including MSPs, gives HMRC more flexibility to support customers. HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership. HMRC is currently in an initial approximately 18 month ‘proof of value’ phase for its use of MSPs and has no plans to publish full staffing projections for MSPs or customer services staff at this stage. Overall the projected cost for 12 months was approximately £23m of resourcing spend. Future workforce decisions will be informed by the outcome of this phase and taken in line with normal business planning and Spending Review processes.

How HMRC will ensure that workforce planning decisions do not incentivise replacement of permanent staff with externally supplied labour.

Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce. This contract was procured through a Government Commercial Agency (previous Crown Commercial Service) framework and meets the stringent controls and standards set by the Agency for Government contracts. This includes ensuring all employment legislation, including National Minimum Wage and Employment Rights Act are adhered to. As Customer Service is skilled work, all suppliers must pay market rates to secure people with the appropriate skills to meet HMRC’s needs. HMRC are not privatising their services. HMRC will continue to deliver the majority of its customer services through its own customer service staff, and overall HMRC staffing levels are expected to increase over the Spending Review period. HMRC can only recruit to known average levels of customer demand or it risks not providing value for money to the taxpayer. Using mixed resourcing approaches, including MSPs, gives HMRC more flexibility to support customers. HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership. HMRC is currently in an initial approximately 18 month ‘proof of value’ phase for its use of MSPs and has no plans to publish full staffing projections for MSPs or customer services staff at this stage. Overall the projected cost for 12 months was approximately £23m of resourcing spend. Future workforce decisions will be informed by the outcome of this phase and taken in line with normal business planning and Spending Review processes.

If she will liaise with the Financial Conduct Authority to prevent the removal of the Family Protection Plan by C Mutual and Maiden Life Försäkrings until policy holders have secured alternative provision.

It is for the FCA as the regulator of financial services to decide whether to take any steps in relation to this issue and I can confirm that HMT has asked the FCA to look into this matter. The FCA will respond directly to the Honourable Member by letter. A copy of the letter will be placed in the Library of the House.

If she will have discussions with the Financial Conduct Authority to ensure that (a) Vulnerability Assessments and (b) a Consumer Duty Review are conducted before the withdrawal of the Family Protection Plan by C Mutual and Maiden Life Försäkrings.

It is for the FCA as the regulator of financial services to decide whether to take any steps in relation to this issue and I can confirm that HMT has asked the FCA to look into this matter. The FCA will respond directly to the Honourable Member by letter. A copy of the letter will be placed in the Library of the House.

If she will review the conduct of C Mutual Ltd and Maiden Life Försäkrings in the context of the removal of the Family Protection Plan.

It is for the FCA as the regulator of financial services to decide whether to take any steps in relation to this issue and I can confirm that HMT has asked the FCA to look into this matter. The FCA will respond directly to the Honourable Member by letter. A copy of the letter will be placed in the Library of the House.

With reference to the policy paper entitled Capital Gains Tax—rates of tax, published by HMRC on 6 November 2024, if she will publish a breakdown of the £600,000 required to make changes to IT systems.

HMRC do not provide detailed costs related to policy changes. The costs given represent a high level cost estimate for the changes required to HMRC IT systems to deliver this policy change which follow a recognised standard methodology.