Tax credit chaos still failing families - Annette Brooke

12.00.00am BST (GMT +0100) Thu 1st Jun 2006

Annette Brooke, Liberal Democrat MP for Mid Dorset and North Poole, has called for a total overhaul of the way tax credits are awarded after new figures revealed that 2700 families in Mid Dorset and North Poole are still being forced to payback over £2.1 million worth of tax credits, due to overpayments made by HM Revenue and Customs.

Annette Brooke, Liberal Democrat Spokesperson for Children and Families, said:

"It is simply unacceptable that one year on over £2 million worth of tax credits are still being overpaid in our constituency. In some areas, the situation is getting worse not better.

"Last May, the Paymaster General claimed that the system was working well for the vast majority of families. But today's figures show that the Minister is clearly in denial - in actual fact nationwide 44%, over 2.8 million people, received incorrect tax credit payments.

"The Minister has known of the systemic failures in the tax credit system for years and today's figures are yet more evidence that too little has been done to rectify them. Recent modifications to the system are too little too late.

"Meanwhile Dawn Primarolo continues to bury her head in the sand and blocks parliamentary scrutiny of this crucial issue. New ministerial leadership is now needed to introduce a radical overhaul of the way tax credits are administered."

ENDS