‘Lessons still need to be learned’ say tax credit campaigners

Campaigners for families on low incomes have welcomed a report from the Treasury select committee calling for further improvements to the tax credits system.

The Child Poverty Action Group (CPAG), who gave evidence to the committee’s inquiry, said that lessons still needed to be learned from administrative problems in the first few years of the new tax credits scheme.

CPAG’s Chief Executive Kate Green said:

“Tax credits have benefited millions of low-income families and helped to reduce child poverty, but they have not yet worked as well as they should have done. A package of measures to improve the system is now being implemented and we hope this will make tax credits work better, particularly for families on the lowest incomes that rely on them.

“Lessons still need to be learned from past problems such as the large scale of overpayments. The Revenue should implement the report’s recommendations, particularly on introducing a pause so that people have the chance to challenge an overpayment before it is clawed back.

“We would also like to see analysis of the causes of overpayments, figures on the level of official or IT error, a statutory right of appeal against overpayment decisions and the option of face-to-face advice for claimants who need it.

“And as we move forward from the problems of the past CPAG urges politicians from all parties to commit to further investment in tax credits as a way of lifting children out of poverty and helping parents back to work.”

 

For further information please contact:
Alex Belardinelli
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302
abelardinelli@cpag.org.uk