Parliamentary report shows need for urgent action to improve tax credits

Responding to the publication of a Public Accounts Committee report, Child Poverty Action Group’s chief executive Kate Green said

“The Committee draws attention to historic tax credit debt. These overpayments arose in the first two years where administration was poor. Much of the debt is unlikely to be recovered but continuing to chase it causes families worry and hardship. HM Revenue and Customs should draw a line under implementation problems by writing off outstanding debt from 2003-05.

“The Committee highlights the many families with children who do not receive tax credits to which they are entitled. CPAG strongly supports the recommendation that HM Revenue and Customs should have take up targets for tax credits and action plans to increase take up.

"CPAG has been supportive of the HM Revenue and Customs tax credit transformation programme, which aims to improve clarity and customer service, but this report shows how much further this programme needs to go. In particular CPAG urges much greater provision of face to face advice by HM Revenue and Customs to the diversity of claimants needs. It is also vital that HM Revenue and Customs carefully monitors the impact of the recession on the delivery and improves systems to support families at this difficult time”.

Notes for editors

• The ‘HM Revenue and Customs: Tax Credits and Income Tax’ report is at http://www.parliament.uk/parliamentary_committees/committee_of_public_accounts.cfm
• CPAG recent evidence on tax credits can be found at http://www.cpag.org.uk/info/briefings_policy/CPAG_tax_credits__response_0908.pdf
• CPAG is the leading charity campaigning for the abolition of child poverty in the UK and for a better deal for low-income families and children.
• CPAG is one of over 130 member organisations of the Campaign to End Child Poverty, campaigning for public and political commitment to ensure the goals of halving child poverty by 2010 and ending child poverty by 2020 are met.

For further information please contact:
Paul Dornan
07816 909302
pdornan@cpag.org.uk