Tax Credit Chaos still failing families in Gwent

12.00.00am BST (GMT +0100) Sat 3rd Jun 2006

Many families have given up on the Tax Credit system

New figures revealing that over 14,000 families in Gwent are still being forced to payback £11.8 million worth of tax credits, due to overpayments made by HM Revenue and Customs has led a senior National Assembly Member to call for a total overhaul of the system.

Mr German said, ""It is simply unacceptable, that one year on, nearly £12 million of tax credits in Gwent are still being overpaid. In some areas, the situation is getting worse not better.

Mike German, National Assembly leader of the Welsh Liberal Democrats, said:

"The implementation of this policy has been a shambles from the start. It has led to the tragedy of some of Britain's poorest families being driven further into poverty and debt.

"No wonder many families have given up on a system which seems to deliver precisely what people on low incomes least need - instability and uncertainty.

"This is a system in chaos, failing those who are most in need of help.

"To overpay £2bn in one year - and then ask for it back - is incredible; two years running it is inexcusable.

"It is surely now time to replace the paymaster general, who through oversight, incompetence, or complacency has presided over a broken system rife with incorrect payments and fraud."

ENDS

DIWEDD

NOTES:

For an on-line pdf. document of the statistics visit:

http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-geog-annual0405.pdf

Contact point for enquiries and further information for the Child and Working Tax Credits Statistics:

HM Revenue and Customs,

Room 1/40,

100 Parliament Street,

London SW1A 2BQ

020 - 7147 3083

Fax : 020 - 7147 3119

E-mail : ar_tcasp.ir.sh@gtnet.gov.uk

http://www.hmrc.gov.uk/stats/personal-tax-credits/menu.htm

The figures for Gwent are as follows:

Council Area Number of Awards (families) Overpayment

Blaenau Gwent 2,800 £2.3 million

Monmouth 2,700 £2.2M

Newport 5,200 £4.5M

Torfaen 3,500 £2.8M

The report was published by National Statistics which are produced to a high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs.

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020 - 7533 5888

minicom : 01633 812399

E-mail : info@statistics.gov.uk

Fax : 01633 652747

Letters : room DG/18, 1 Drummond Gate, LONDON, SW1V 2QQ

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