Tax Credit Chaos still failing families in Northampton (Andrew Simpson)

Tax Credit Chaos still failing families in Northampton

May 31, 2006 10:29 PM

Andrew Simpson, Liberal Democrat Parliamentary spokesperson for Northampton North has today called for a total overhaul of the way tax credits are awarded after new figures revealed that 3,300 families in Northampton North are still being forced to payback over £2.4 million worth of tax credits, due to overpayments made by HM Revenue and Customs.

"It is simply unacceptable, that one year on, £2.4 million amount of tax credits in Northampton North are still being overpaid. In some areas, the situation is getting worse not better.

"Last May, the Paymaster General claimed that the system was working well for the vast majority of families. But today's figures show that the Minister is clearly in denial - in actual fact nationwide 44%, over 2.8 million people, received incorrect tax credit payments.

"The Minister has known of the systemic failures in the tax credit system for years and today's figures are yet more evidence that too little has been done to rectify them. Recent modifications to the system are too little too late.

"Meanwhile Dawn Primarolo continues to bury her head in the sand and blocks parliamentary scrutiny of this crucial issue. New ministerial leadership is now needed to introduce a radical overhaul of the way tax credits are administered."

Ends

Notes: Figures for Northampton North released today and are from the breakdown of tax credit overpayments for 2004/05 by HM Revenue & Customs Analysis Team and can be found at http://www.hmrc.gov.uk/stats/personal-tax-credits/menu.htm