Launch of new independent report on tax credits

One year on and confusion continues
18.08.04

... child poverty reduced, but many don’t understand the system and ongoing problems threaten to undermine the gains

Leading children’s charity the Child Poverty Action Group today launch a new critical report into governments tax credits and conclude that after a year of the new system, problems and confusion amongst claimants continue.

Tax credits: one year on is written by Marilyn Howard and will be launched from the Diana Princess of Wales Memorial Fund in Westminster. The launch of the report will be attended by representatives from leading Welfare Rights groups, the Inland Revenue and user groups.

Tax Credits: one year on reviews the first year of the new system and makes policy recommendations for the future. Drawing on case studies provided to CPAG by welfare rights advisers across the UK, the book looks beyond the well-documented implementation problems and examines broader issues of concern, including childcare, income assessments, overpayments and the relationship with other benefits.

'There remains too much confusion amongst claimants,' said CPAGs Chief Executive Kate Green. 'While of course we welcomed the additional resources provided by the new system last year and have been pleased with the impact it has had for many low income families, the system remains riddled with problems that are not being addressed.'

'The system is so complicated too many people still do not understand it. There are also problems with overpayments where claimants are being paid incorrect amounts through no fault of their own – and are then having money taken off them leaving them and their children with very little to live on.' she said.

'One year on is an excellent review of the first year of the new system. Furthermore it makes recommendations that both the government and the Inland Revenue should listen to. A simpler easier to use system would ensure that those families who desperately need money which is rightfully theirs receive the right amount at the right time.'

For more information contact:
Ashley Riley
Press Officer
Tel 020 7812 5216
Mobile 07811 324339
ariley@cpag.org.uk

Notes

• Introduced in April 2003, the new tax credits – child tax credit and working tax credit – represent a major change in government policy on making work pay for low-income families and are critical to the success of the Government’s pledge to end child poverty by 2020.
• Tax Credits: one year on will be launched at a reception at the Diana Princess of Wales Memorial Fund on Wednesday 18th August 2004 from 12 noon to 2pm. Marilyn Howard will be in attendance as will Kate Green, the Chief Executive of CPAG. Representatives from other welfare rights groups and claimant groups will also be in attendance.