Tax Credit Chaos still failing families

12.00.00am UTC (GMT +0000) Fri 2nd Jun 2006

John Leech, Liberal Democrat MP for Manchester Withington, has today called for a total overhaul of the way tax credits are awarded after new figures revealed that 2,100 families in Manchester Withington are still being forced to pay back £2 million worth of tax credits, due to overpayments made by HM Revenue and Customs.

John Leech MP said:

"It is simply unacceptable that one year on, £2 million of tax credits in Manchester Withington are still being overpaid. In some areas, the situation is getting worse not better."

"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."

"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."

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