Revenue and Customs: Managed Service Companies
The question
To ask the Chancellor of the Exchequer, what safeguards are in place to prevent the creation of a two tier workforce between Managed Service Provider staff and those directly employed by HMRC, and if she will make a statement.
Answered by Dan Tomlinson
The current staff provided by Managed Service Providers (MSPs) represent additional capacity in 2025/26. HMRC staff will not be made redundant as a result of this initiative.
Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.
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.
Callers are not informed whether the person they are speaking to is employed by HMRC or an MSP, as the service which they receive is the same. OGDs also take this approach.
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