Research and analysis

Tax credits communications campaign tracking research 2022

Published 8 February 2024

Quantitative research with tax credits claimants measuring the effectiveness of the 2022 tax credits campaign.

HM Revenue and Customs (HMRC) Research Report 739.

Research conducted by the independent research agency Ipsos between May and September 2022. The findings in this report reflect the attitudes of participants at the time it was conducted. Prepared by Ipsos (Juliette Albone, Tom Cooper, Kyle Morris) for HMRC.

Disclaimer: The views in this report are the authors’ own and do not necessarily reflect those of HMRC.

1. Summary of findings

The annual tax credits campaign is aimed at claimants who must renew their tax credits by 31 July each year in order to remain in receipt of the correct tax credits payment. There are other claimants who are renewed automatically. This research report aims to report on the effectiveness of the 2022 tax credits campaign, which is targeted at the group who are not renewed automatically. Throughout this report, where relevant, results from the pre- and post-wave surveys of this years’ campaign are split by reply required claimants and auto-renew claimants.

Campaign recognition is significantly higher amongst the primary audience of reply required claimants (78%) than auto-renew (50%) suggesting successful targeting. Unprompted, information about the deadline date was the most cited message from the adverts amongst reply required claimants. However, there was no significant change in the proportion of claimants who could identify the correct deadline date unprompted between the pre- and post-wave (31% compared to 33%).

After seeing the ads, reply required claimants were more likely than auto-renew claimants to take any action (75% compared to 63%). The most cited follow-up action for both audience groups was renewing online (27% amongst reply required and 32% amongst auto-renew).

Renewing online, which includes using the HMRC app, remains the most popular method of renewal for all claimants (62%), and has maintained similar levels from last year (67%). This method was largely chosen because of the perceived ease (46%) and convenience (43%) followed by speed (40%).

Two-thirds (66%) of reply required claimants in the post-wave prioritised renewing tax credits differently this year. Amongst this group, COVID-19 remains the most cited reason (71%) for prioritising tax credits differently, followed by household bills and living expenses (28%). Furthermore, 78% of those reply required claimants in the post-wave who could recall why they were prioritising differently said that they submitted earlier than usual.

Research was conducted online via the Ipsos online panel. Seven hundred claimants were surveyed in the pre-wave and 957 in the post-wave. Due to the campaign objectives this year, quotas were set on the number of claimants who are required to reply to HMRC in order to renew their claim (‘reply required’ claimants) and on those who are renewed automatically. As the method and sampling this year is consistent with the 2021 survey, we have made direct comparisons with the 2021 results throughout the report where relevant.

2. Introduction

2.1 Background and objectives

HM Revenue and Customs (HMRC) administers tax credits to provide financial support to vulnerable and low-income families. Each year, HMRC runs a national tax credits renewals advertising campaign, targeting reply required claimants. Historically this has included TV, radio and digital channels such as, video on demand, digital display, social media and sponsored search results. Since 2020, advertising has run on radio and digital channels only, reflecting a reduced number of claimants to reach since 2019.

The 2022 campaign was aimed primarily at reply required claimants, as opposed to those who are renewed automatically.

The research explores the effectiveness of the campaign by measuring:

• spontaneous and prompted awareness of the campaign and sources of awareness among tax credits claimants

• response to the campaign elements in terms of engagement, message take-out and call to action

• pre and post-shifts in knowledge and attitudes as a result of exposure to the campaign

2.2 Methodology and sample

Ipsos’ Social Research Institute carried out the research, using an online panel to complete surveys.

Two waves of research were conducted to evaluate the 2022 campaign: a pre-wave, which acted as a baseline prior to the campaign running, followed by a post-wave after the campaign ended. Seven hundred tax credits claimants were surveyed in the 2022 pre-wave, and another separate 957 tax credits claimants were surveyed in the post-wave. The volume of participants in the post wave increased due to a change in the wording of a question during the fieldwork period.

Interviewing for the 2022 pre-wave took place between mid-May and mid-June. For the 2022 post-wave, interviews took place between August and early September. Claimants were sampled from across the UK from the Ipsos online panel.

Due to the campaign objectives this year, quotas were set on the number of claimants who are required to reply to HMRC in order to renew their claim (‘reply required’ claimants) and on those who are renewed automatically. This was introduced in 2021 to help measure tax credits campaign tracking, and therefore means that aside from 2021, no direct comparisons with prior waves of tracking research have been made.

In the post-wave research, each respondent was shown and played examples of the following campaign materials:

• digital display

• online video

• online static imagery

• digital audio

There were 2 iterations of each campaign asset, called ‘Remind’ and ‘Reassert’. Claimants were only shown either ‘Remind’ or ‘Reassert’ versions of the stimulus, and the number seeing each was equal. The ‘Remind’ and ‘Reassert’ campaign assets featured subtle differences, with the latter using slightly firmer and more urgent messaging cues.

In this report, comparisons are made between the pre- and post-waves of the survey and the 2021 results, where relevant. Differences in response between groups or across waves have been significance tested at a 95% level of significance. Statistically significant differences in responses are explicitly indicated in the findings.

2.3 Sample profile

Quotas were set to achieve a robust sample size for each key subgroup (gender, age, employment status) as shown in figures 1 and 2 below.

Figure 1: Sample profile of reply required claimants

Reply Required	Total	Men	Women	16-34	35+	In work	Out of work
Pre-wave - number of interviews	293	123	168	94	199	239	26
Pre-wave - % of completes	42%	18%	24%	13%	28%	34%	4%
Post-wave - number of interviews	372	183	187	123	249	339	22
Post-wave - % of completes	39%	19%	20%	13%	26%	35%	23%

Figure 2: Sample profile of auto-renew claimants

Auto-renew	Total	Men	Women	16-34	35+	In work	Out of work
Pre-wave - number of interviews	407	122	284	89	318	290	19
Pre-wave - % of completes	58%	17%	45%	13%	45%	41%	3%
Post-wave - number of interviews	585	168	413	149	436	458	99
Post-wave - % of completes	61%	18%	43%	16%	46%	48%	10%

Please note that due to non-responses percentages will not always add up to 100%.

3. Ad recognition

3.1 Recognition and channel recall

In the post-wave survey, claimants were shown the campaign materials in different forms and asked whether they recognised them. Just under two-thirds (61%) of tax credits claimants recognised at least one of either the digital display ads, online video ads, online static ads or radio/digital audio ads. Overall recognition this year was significantly higher compared to 2021 (61% compared to 50%). Recognition of ads this year amongst reply required claimants (78%) was significantly higher than auto-renew claimants (50%). Amongst the channels of advertising that took place, claimants reported having heard audio ads the most with two-thirds of reply required claimants (69%) having reportedly heard audio ads. This was followed by online assets (65%) and online and social video (63%).

Claimants were asked, unprompted, to name any place they had seen or heard advertising or media coverage concerning tax credits in the last few months. In both pre- and post-waves spontaneous recall was low, but increased for the reply required audience in the post-wave. In the post-wave, just under half of reply required claimants (46%) and 6 in 10 auto-renew claimants (60%) had not seen or heard any advertising or media coverage concerning tax credits. The proportion of reply required claimants who could not recall seeing or hearing anything in the pre-wave was over 6 in 10 (63%), significantly higher than in the post wave (46%).

Claimants were then prompted with a list of sources of coverage, and were asked to select any which they had seen. Of the sources listed, the audio ad (on the radio or from music apps or streaming sites eg Soundcloud or Spotify) was the most commonly selected, with just under one-quarter of reply required claimants (24%) reporting they had heard this. This was followed by the social media ad (23%) and a TV ad (22%). Overall, when prompted, over half of reply required claimants (55%) in the post-wave recalled seeing or hearing some form of tax credits advertising. This is an increase from 2021, when 51% of reply required claimants recalled seeing or hearing tax credits advertising.

Amongst reply required claimants who remembered seeing the ads online, recall was strongest for the ads on social media (68%). This was a significant increase compared to 2021 where 6 in 10 (59%) recalled seeing the ads on social media. Just over half (51%) recalled seeing the ads on a website, and just over 1 in 10 (14%) remembered seeing them somewhere else online. Just under 1 in 10 (7%) could not recall where they saw the ads, which was significantly lower than the proportion of auto-renew claimants who could not recall where they saw the ads (21%). This suggests that the ads are being correctly attributed, as these answers reflect where the campaign was being targeted.

Moreover, reply required claimants were shown 2 subtly differing versions of the campaign stimulus categorised as ‘Remind’ and ‘Reassert’, the former featuring softer language and the latter featuring more urgent. However, findings show that there was no significant difference in recognition between those prompted with ‘Reassert’ assets than those prompted with ‘Remind’ assets. Around half of reply required claimants reported having seen either ‘Reassert’ (51%) or ‘Remind’ (49%) versions of the online and social video ads, while recognition for either version of the audio ad was similarly split (51% ‘Reassert’ and 49% ‘Remind’). For the social image ad recognition was equal (50% for each). These findings represent no change from 2021.

4. Message recall and attitudinal impact

In the post-wave survey, after being shown advertising materials from the campaign, claimants were asked a series of questions relating to the messages of the adverts, how the adverts made them feel and what actions the adverts might prompt them to do.

4.1 Understanding of ad messaging

Having been shown the advertising materials, claimants were asked an unprompted question about what they thought the main messages of the adverts were. The most cited message, given by reply required claimants, was the deadline date/the request to renew before July 31. However, compared to 2021, the proportion of claimants mentioning this was significantly lower. Falling from 28% in 2021 to 14% in 2022. The next most recalled message was that payments will stop (if not renewed on time), which just over 1 in 10 claimants (12%) believed was the main message.

After they had seen the adverts, claimants were asked to reflect on a series of statements relating to the key messages of the adverts. Overall, claimants agreed with these messages: an equally large majority of both reply required claimants (92%) and auto-renew claimants (92%) agreed that renewing their tax credits is too important to forget. Nine in ten reply required claimants (90%) agreed that they needed to renew their tax credits by 31 July or their payments will stop, a significant increase compared to 2021 where only 84% of reply required participants agreed. 87% of reply required claimants agreed that they should go to ‘Manage your tax credits guidance’ on GOV.UK to renew.

Overall, the adverts were clear and useful for both auto-renew and reply required claimants. In particular, the renewal deadline was clearly conveyed by the advert, with just over 9 in 10 reply required claimants (91%) agreeing that the adverts clearly told them the deadline for renewal. Nine in ten reply required claimants (89%) agreed that the adverts were a useful reminder to renew.

However, there was a significant difference between reply required claimants and auto-renew claimants on the issue of how the adverts made them feel: three-quarters of reply required claimants (76%) thought that the adverts made them feel more positively about tax credits, while fewer than 6 in 10 auto-renew claimants (57%) agreed with this statement. Significantly fewer auto-renew claimants (55%) thought that the adverts told them something new compared to reply required claimants (73%). This perhaps reflects the fact that, unlike reply required claimants, auto-renew claimants did not need to take notice of the renewal deadline date as they were not required to take any action.

4.2 Attitudinal impact of the ads

Claimants were asked a prompted question on how they felt after seeing or hearing the adverts. Amongst reply required claimants, claimants feeling like they should do their tax credits renewal immediately was the most cited statement in response to this question, with 4 in 10 (41%) choosing this statement. This was a significant increase from 2021 where just 1 in 3 participants (32%) reported feeling such. This supports other data from the post-wave survey that suggests that renewing tax credits was a key takeaway from the adverts for claimants.

This demonstrates a shift in claimant focus away from 2021 where the 31 July deadline was the most important issue, and that advertising is still driving behaviour albeit with less focus on the deadline. One-third of reply required claimants (34%) felt more positive about HMRC after seeing or hearing the adverts, a significant increase on 2021 where just one-quarter felt more positive about HMRC (25%). Around one-quarter of reply required claimants (28%) felt anxious about not renewing on time after seeing or hearing the adverts, and around 2 in 10 reply required claimants (18%) felt under pressure after seeing or hearing the adverts.

The post-wave survey data indicates that the adverts were largely effective in motivating claimants to take action, with three-quarters of reply required claimants (75%) stating that they would take any action after seeing or hearing the adverts. Successful targeting of the adverts is also indicated by the fact that a significantly higher proportion of reply required claimants (75%) said that they would take action compared to auto-renew claimants (63%). Being motivated to renew online was the most cited action amongst both reply required (27%) and auto-renew (31%) claimants.

Claimants were generally positive about the adverts themselves, with 8 in 10 reply required claimants (85%) agreeing that the adverts were for people like them, and a similar proportion (81%) agreeing that the adverts were supportive and encouraging. However, reply required claimants were significantly more likely to think the adverts were patronising (65%) and irritating (52%) in 2022 compared to 2021 where just under half found them patronising and irritating (49% and 44%).

5. The renewals experience and attitudes towards HMRC

5.1 Deadline awareness

There was an increase in the proportion of claimants who correctly identified the renewal deadline date unprompted between pre-wave and post-wave. Overall, just under a third of pre-wave claimants (31%) gave the right renewal deadline date of 31 July, while a third of post-wave claimants (33%) gave the correct renewal deadline date.

The proportion of claimants who gave the incorrect date and month between the pre-wave and post-wave surveys was minimal. Six in ten claimants (57%) across both the pre-wave and the post-wave gave the wrong date and the wrong month when asked to name this year’s renewal deadline. These findings were similarly repeated by claimants where 43% of both pre-wave and post-wave respondents were able to correctly identify the deadline month. Across both pre-wave and post-wave claimants only 1 in 3 (31% pre-wave versus 33% post-wave) were able to correctly identify the date of July 31. Despite the lack of a significant uplift in unprompted deadline awareness between the pre- and post-wave, the correct ad messages are being taken up and driving action.

5.2 Renewal method

Over three-quarters of claimants (75%) renewed their tax credits themselves. Seventeen per cent of claimants renewed their tax credits with their partner, and fewer than 1 in 10 claimants (6%) stated that their partner renewed.

Respondents who could recall contacting HMRC were asked what prompted them to renew their tax credits. Due to a small base size for this question last year, we do not have a robust base line for comparison and so this year’s figures should be interpreted with caution. Communications from HMRC (eg letter, renewals pack, SMS reminders) and advertising were the most cited reasons prompting renewal (both were mentioned by 62% of reply required respondents), and equally as effective at prompting renewals. Even among ad-recognisers, the majority (60%) flagged communications from HMRC as something which prompted them to renew. Individually, the renewals pack (31%) and letter from HMRC (27%) were the most effective prompts for renewal amongst reply required claimants.

Online (which includes the HMRC app) remained the most popular method of renewing tax credits, with just over 3 in 5 claimants (62%) choosing to renew their claim this way in 2022. On paper and by telephone were less popular methods of renewal compared to online, with 20% and 17% renewing by these ways respectively. Of those who renewed online, ease and convenience (‘I could do it at a time that suited me’) were the most cited reasons for renewing that way, with just under half (49%) of the online renewal group stating that they renewed online for these reasons. Furthermore, around the same number of those who renewed online (48%) chose this renewal method because they ‘thought it was the easiest way to do it’.

Just under 4 in 10 claimants renewed across June and July (19% in June and 20% in July).

5.3 Renewal experience

Overall, claimants were largely positive about the experience of renewing their tax credits, with more than 9 in 10 claimants (93%) finding the renewals process easy. Amongst the 3 primary options of renewal, online, by phone, on paper, only renewal by phone saw a decrease where only 4 in 10 (81%) found renewal by telephone easy.

Claimants were given a series of statements relating to tax credits and were asked to state whether they agreed or disagreed with each statement. Amongst reply required claimants, ensuring all the information is complete and accurate, and renewing even if there weren’t any changes in circumstances (‘to ensure I receive the right money’), were the 2 most agreed upon statements. Nearly 9 in 10 (91% and 90%) reply required claimants agreeing with these statements in the post-wave survey. Reply required claimants were also in wide agreement that it was important to renew by the deadline, with nearly 9 in 10 reply required claimants (84%) agreeing with this statement in the post-wave.

Four in ten reply required claimants in the pre-wave (40%) and around one third of reply required claimants in the post-wave (33%) stated that they placed the same priority on renewing their tax credits this year as they did in previous years. Around 6 in 10 claimants (58% pre-wave and 64% post-wave) felt that renewing their tax credits had a higher priority this year. Amongst those reply required claimants who prioritised submitting their tax credits renewal differently this year, a significant number (71% post-wave) of these claimants prioritised renewal differently because of the impact of COVID-19. Of those reply required claimants who knew why they prioritised their tax credits renewal differently this year, around three-quarters (75% in pre-wave and 78% in post-wave) were likely to renew earlier than usual.

Awareness of the consequences of not renewing tax credits was tested amongst claimants. This was done by asking claimants to select which statements they thought were true, from a series of statements regarding the consequences of not renewing on time. The most cited consequence amongst reply required claimants was that they would no longer receive tax credits money if they failed to renew; just under half of reply required claimants in both the pre-wave (49%) and post-wave (48%) cited this, with a significantly higher proportion of auto-renew claimants (56%) citing this factor in the post-wave compared to the reply required audience (48%). The second most cited consequence was that they would receive the wrong amount of money if they did not renew by the deadline, with over a third of reply required claimants in the pre-wave (37%) and post-wave (37%) citing this consequence.