Families Paying Back Over £7 million in Tax Credits Across Stockport - Stunell
June 6, 2005 9:11 AM
Andrew Stunell MP today slammed the Government over the administration of the tax credit system, following astonishing figures published on the number of overpayments made by HM Revenue and Customs in 2003/4.
Hazel Grove MP, Andrew Stunell said:
"In my constituency alone, over a third of all of the tax credit claims were overpaid and there are now 2,600 families paying back on average £1000 each. Across the whole of Stockport, there are 7,500 families paying back a massive 7 million pounds.
"These figures are unprecedented and reflect the serious problems not only with the computer system, but inherent within the new tax credit system.
"I have been inundated with letters from constituents concerned about this issue. There are many local cases where the tax credit office has attempted to claw back money that had often been overpaid as a result of internal administrative error rather than customer misinformation.
"Too many families are having their budgets thrown into chaos by the tax credit office causing serious problems and hardship especially for those on low incomes.
"The policy of reassessing income at the end of the award is flawed. I am calling for a return to a system of fixed awards to end this bureaucratic nightmare for many families."
ENDS
Notes to Editors
1. The new figures are available at http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-pyts_geog0304.pdf
2. There is no point of comparison with previous years. Child and Working Tax Credits were introduced in 2003 replacing Working Families Tax Credit where awards were fixed and not reassessed at the end of the tax year.
3. Overpayments arise for a variety of reasons such as a delay in reporting changes of circumstances; or when the 2003-04 income was more than £2,500 higher than the 2001-02 income but no estimate was reported before the end of 2003-04 (or not soon enough to prevent an overpayment. They can also arise through official error.
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