Tax Credit Chaos still failing families says Houseley

7.48.22pm GMT Sat 17th Jun 2006

Andrew Houseley, Liberal Democrat Parliamentary Spokesman, has today called for a total overhaul of the way tax credits are awarded after new figures revealed that 3,000 families in Central Suffolk & North Ipswich are still being forced to payback £2.4 million worth of tax credits, due to overpayments made by HM Revenue and Customs.

Andrew Houseley said:

"It is simply unacceptable, that one year on, £2.4 million of tax credits in 3,000 households are still being overpaid. In some areas, the situation is getting worse not better.

"A year ago, 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."