Dundee LibDems highlight criticism of the government over tax credit fiasco

5.11.58pm GMT Sat 4th Feb 2006

Tax Credit issues again highlighted by Dundee LibDems

Dundee Liberal Democrat Councillor Helen Dick has welcomed the recent criticism of the Government over the failings of the child and working family tax credit system. Cllr Dick has previously highlighted constituents' concerns about the failings of Labour's Tax Credits system, and, in particular, the overpayments some constituents have been asked to repay following failures in the administration of the system.

The recent Public Administration committee's report ("Tax Credits: putting things right"- published 29th January 2006) follows several other damning reports from organisations like Citizen's Advice and the Parliamentary Ombudsman.

The committee, chaired by a Labour MP and with a majority of Labour members says the tax credit system isn't doing the job it was meant to and that the system is treating people unfairly.

Figures highlighted last year by the Liberal Democrats showed that large proportions of the payments made to people across the country have been wrong. That meant that in many cases the government was trying to get money back from low income families, driving many into debt. The wrong payments were made despite efforts by recipients to get the figures corrected. The Liberal Democrats called for the government to write off the wrong payments in every case in which it, or its computer system, was the reason for the mistake.

Cllr Dick said it was vital the government reacted positively to the Public Administration committee's report, adding - "This scheme is supposed to help people on low incomes but the people struggling with it are the very citizens Tax Credits were supposed to help. Its time the Government sorted out the mess."

Related Links:

Dundee LibDem story August 2005 (including links) - "Tax Credit Chaos - Dundee Liberal Democrats highlight the issue".

UK Parliament Website - PASC slams Revenue's failure to look after its Tax Credits customers.

MPs hit out at Tax Credit Scheme.