Tax credit fiasco is failing local families

2.37.55pm BST (GMT +0100) Thu 1st Jun 2006

Government blunders cost local people

13,700 families in the Stockport area are being forced to pay back £11 million to the government following its own bungling - local MPs have revealed.

Stockport's two Liberal Democrat MPs, Andrew Stunell and Mark Hunter have today called for a total overhaul of the way tax credits are awarded after new figures revealed that almost 14,000 families across Stockport are still being forced to payback over £11 million worth of tax credits, due to overpayments made by HM Revenue and Customs.

Commenting on today's figures, Hazel Grove MP, Andrew Stunell said:

"It is simply unacceptable that one year on, £11 million pounds of tax credits in Stockport are still being overpaid. In some areas the situation is getting worse not better. Many local families have contacted me because they are being left out of pocket without the means for everyday living.

"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."    

Cheadle MP, Mark Hunter added:

"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