Tax Credits – let families start the new year with a clean slate says children's charity
06.01.04

The Child Poverty Action Group (CPAG) is supporting an Early Day Motion calling for an amnesty on overpayments of tax credits. The charity has today sent out a briefing to MPs asking them to support the EDM that has been tabled in parliament (EDM number 325). CPAG is calling for an amnesty for all overpayments of tax credits unless there is fraud.

The Director of CPAG, Martin Barnes, said:

'We support the Government's aim of tackling child poverty through a system of tax credits but there is a serious risk that confidence in the scheme will be undermined by poor decision making on the part of the Inland Revenue.

'The recovery of overpayments, with no regard to circumstances, is causing distress and hardship for many families already struggling on low incomes. We believe that families should be able to face the New Year without the hardship and debt that recovery of overpayments is causing.

'We have had reports of many families having been overpaid tax credits due to the Inland Revenue wrongly assessing claims or failing to act on information given by claimants. Many claimants did not know they were being paid too much money.

'The Inland Revenue's own code on overpayments was not finalised until November and remains deeply flawed. Although 'top-up' payments can be made for cases of official error and hardship, these are not being publicised and may be recovered from future awards.

'We believe that an amnesty on overpayments will restore confidence in tax credits and is the only way to ensure that families do not suffer hardship and debt.'

CPAG has twice written to the Paymaster General, Dawn Primarolo, expressing concern about the Revenue's recovery of overpayments and requesting an urgent meeting.

Find out more by following these links:

• Why CPAG is supporting an Early Day Motion calling for an amnesty on overpayments of tax credits
• Read the Early Day Motion (EDM 325)
• Ask your MP to sign the EDM
• Find out how many and which MPs have signed the EDM
• Find out who is your MP

or contact:

Paula Twigg
Welfare Rights Manager
0207 837 7979 ext 237
email ptwigg@cpag.org.uk

Ashley Riley
Press Officer
Mobile: 07811 324339
020 7812 5216
email ariley@cpag.org.uk

Notes for editors:

The Child Poverty Action Group is a leading charity campaigning for the eradication of child and family poverty in the UK. CPAG publishes research on poverty among children and young people and seeks positive solutions through lobbying and campaign work. The charity helps ensure that families
receives the financial support they are entitled to by providing expert advice, training and information for advice workers on all aspects of the tax credit and social security systems. CPAG is a membership organisation with around 4,000 member organisations and supporters.
Website: www.cpag.org.uk

CPAG is a registered charity (no. 294841). Its work is funded by donations, publication sales, membership income, training and legacies. CPAG receives no funding from Government and has only received funding from statutory bodies for dedicated advice or research projects.

CPAG address: 94 White Lion Street, London, N1 9PF