Tax credit shambles leaves thousands of Cornish families with wrong payments
Cornwall’s 5 MPs have called on Gordon Brown to fundamentally reform tax credits after new figures published today show that in 2005 – 06 an error was made in nearly half of the payments made.
The figures show that over £15m was awarded in error, with nearly 19,000 Cornish families receiving overpayments. A further 9,000 families were underpaid a total of £5.6m.
Commenting on the figures, Julia Goldsworthy, MP for Falmouth and Camborne and Lib Dem Treasury Spokesperson, said:
“The chaos in the tax credit system is continuing year after year, causing real financial hardship for thousands of hard-pressed Cornish families, yet the government is still failing to learn the lessons.
“The millions of pounds worth of overpayments mean thousands of families who need financial stability are being plunged into debt as a result of having to make the repayments. I know from the hundreds of cases I have dealt with locally how damaging these gross unfairnesses can be.
“Many people are unfairly forced to repay overpayments when their only mistake is failing to spot an official error on a complex form. It is a disgrace that Gordon Brown has so far failed to implement the majority of the Parliamentary Ombudsman’s recommendations on tax credits which were made two years ago. “
Dan Rogerson, MP for North Cornwall added:
“When fraud and error is added to overpayments, £9bn has been wrongly paid out nationally over just three years. Much needed support for those on low-incomes has been dangled in front of people and then clawed back after the money has already been spent. The Treasury is supposed to be the guardian of public finances, but it has presided over incompetence on a monumental scale.
“Mr Brown must fundamentally reform tax credits to deliver stability for those on low incomes, a fairer policy on recovery of overpayments due to official error, and an independent right of appeal. If he wants to show that he is fit to be Prime Minister, he must sort this mess out before he leaves the Treasury.”
