Improving Tax Credits system vital to ending child poverty

Commenting on the report published today by the Public Accounts Committee on Tax Credits, Child Poverty Action Group’s Chief Executive, Kate Green, said:

“The great success of tax credits has been the role they have played in lifting 600,000 children out of poverty. But their administration still needs significant improvement as errors and overpayment recoveries have caused hardship to thousands of families. The Government should put in place a ‘pause’ before recovery of overpayments as soon as possible.

“The Social Security Advisory Council should have a statutory role advising the Government on the administration of tax credits. The Committee’s independent expertise, advice and scrutiny would be invaluable in helping avoid the problems and lack of fairness that have beset the system to date.

“Tax credits will continue to play a vital role in meeting the Government’s child poverty targets. But to succeed the Government must also apply more investment through the simple and stable route of child benefit and through targeted benefits that support the extra costs faced by families affected by disability.”

Notes to Editors

• Child Poverty Action Group is a member of the Campaign to End Child Poverty.
• The Institute for Fiscal Studies has estimated that to reach the target of halving child poverty by 2010 through tax credits, the Government must increase annual investment by £3.8 billion.

For further information please contact:
Tim Nichols
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302 
tnichols@cpag.org.uk