It follows the MP being inundated with ‘panic stricken’ constituents who had been left penniless by the error.
The Dumfries and Galloway politician also welcomed news that HMRC will not be renewing the contact they have with Concentrix when it ends in May 2017.
Concentrix is a US firm that was hired by HMRC to look into 5.5 million tax credit awards to identify fraudulent cases or errors.
The multi-national firm has faced a catalogue of complaints over the way it reviews people’s entitlement to tax credits with payments cancelled arbitrarily, letters have gone missing and tax credits have been withdrawn without the required 30 days’ notice.
Mr Arkless said: “The Concentrix contract with the government is based on a payment-by-results model, meaning it makes more money if it cuts more payments.
“Their actions have driven many local families into immediate poverty and I am therefore delighted to hear that they will not have their contact renewed in May.'”
He added: “I have been contacted by dozen of constituents, mainly women, who are in dire straits because of Concentrix ‘guilty until proven innocent attitude’.”
