Wednesday, May 31, 2006

Tax credits: another fine mess

Our sympathies go out to any family caught up in this latest tax credits fiasco:
There were calls today for the sacking of the government minister responsible for the tax credits system after an admission from the Treasury that almost £2bn had been overpaid for the second year running. According to the latest figures, £1.8bn of tax credits was overpaid in the 2004/05 financial year, forcing families to face large repayment bills for the second year running.

The number of families facing tax credit repayments has risen despite a fall in the total sum being claimed back by the government, the new figures showed. More than 1.9m claims were overpaid last year, up 120,000 from the previous year, when charities warned some families were being forced into poverty by the debt.

Yes, we remember it well. Just to make it even worse, the government admits that there is no end in sight for this particularly nasty cat-and-mouse game.

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