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HMRC attendance allowances – implementation date

As notified in September 2009, the implementation date for the new HMRC attendance allowance terms is 1 October 2009. However, HMRC had informed us that the pay changes had proved particularly complex and that they would be unable to pay the additional amounts due to some members from this date. The earliest they expected to have the extra money in member’s pockets was the end of December 2009 (backdated to 1 October).

Significant dissatisfaction expressed

The Group Executive Committee considered the position further at its meeting in October 2009, and agreed to formally express to HMRC its significant dissatisfaction with the situation and seek agreement to pay advances on request, before Christmas, to those waiting to benefit from the new attendance allowances.

The union also set out our view that staff leaving the department after 1 October should receive the any outstanding amounts due to them; and that any overpayments which may arise from the changes to attendance allowances should not be pursued given that HMRC was not able to implement the new arrangements on time.

HMRC position

HMRC’s has now replied as follows:

  • there is no scope to pay the new rates of attendance allowance earlier due to practical issues around implementation, but that work is in hand to prioritise increases to the greatest number of lowest earners at the earliest opportunity
  • it is not appropriate to pay advances where payments to large groups of staff have been delayed, for reasons of both principle and practicality
  • anyone leaving HMRC after 1 October but before the additional amounts are paid will indeed receive the additional amounts due to them
  • the department is obliged by the Treasury to pursue overpayments, however they may arise, but that any appropriate defence against recovery (other than the fact of the delayed payment of the new rates) will be considered

The department’s letter is available from your branch secretary.

Conclusion

PCS is extremely disappointed at the department’s response, which will mean that some of our lowest paid members, with an expectation of a much needed increase in income, will have to wait until after Christmas to receive monies due with effect from 1 October. Equally we regret that, in these circumstances, HMRC is not prepared to afford its staff the opportunity to request advances of salary.

However we welcome the fact that payments to the lowest paid are being prioritised and that the department will ensure that anyone leaving after 1 October will also receive any back pay owed. In addition, in accordance with HMRC’s letter, members should be advised to contact the union for advice should they find themselves in a situation where they have been overpaid and the department is seeking recovery.

If you have any questions relating to the content of this briefing please refer these to Andy Thomas at PCS HQ via: andyt@pcs.org.uk