Tax credit overpayments hitting the poorest the hardest
22.06.05

Citizens Advice report shows concern continues…

Commenting on today’s two reports published by Citizens Advice and by the Parliamentary Ombudsman, both focusing on problems with the tax credit system, the Child Poverty Action Group’s Chief Executive Kate Green OBE said,

'These reports are deeply concerning,' said CPAG’s Chief Executive Kate Green OBE. 'While the problems with the wrong payments being made continue, those who are suffering the most are the poor.'

Citizens Advice's damning report – based on 150,000 cases handled by the charity, which runs the Citizens Advice Bureaux – said that HMRC had 'failed to live up to its own standards of information, clarity and efficiency of service' in the administration of tax credits.

'While we welcome the recent recognition of the Paymaster General that the Government needs to address the problems there is now a real urgency for action.

'A recent Government report showed over half of overpayments errors made affected those in the lowest income group – the very people who will struggle to pay them back. This level of error is just not good enough.

'Tax credits can and should be helping those from low income households most. The Government must focus on dealing with this problem as a matter of urgency,' she said.

For further comment:
Ashley Riley
Press Officer
Tel. 020 7812 5216
Mobile 07811 324339
Email ariley@cpag.org.uk

Notes:

CPAG have published a manifesto 'Ten steps to a society free from child poverty' which calls on all political parties to sign up to 10 demands.

• Download a copy of CPAG's manifesto (205 KB pdf file)
  
  
• Download a leaflet summary of CPAG's manifesto (471 KB pdf file)

CPAG’s ten steps to a society free of child poverty are:

• All political parties to commit to eradicate child poverty.
• Poverty proof policies – make each consistent with eradicating child poverty.
• Uprate the combined value of child tax credit and child benefit at least in line with the fastest growing of prices or earnings. The element of this that is child benefit ought to be maximised.
• Increase the adult payments within income support in line with those for children.
• Reform the administration of tax credits and benefits – ensure they get the right amount to the right people at the right time.
• Ensure all children have full access to the requirements – meals, uniforms and activities – of their education.
• Provide benefit entitlements to all UK residents equally, irrespective of immigration status.
• Work towards better jobs, not just more jobs.
• Introduce free at the point of delivery, good quality universal childcare.
• Reduce the disproportionate burden of taxation on poorer families.