JOHN HEMMING MP CALLS ON TAX CREDIT OVERPAYMENT FAMILIES TO COMPLAIN TO OMBUDSMAN

1.20.49pm GMT Wed 9th Nov 2005

John Hemming MP, has called on anyone who has had a tax credit overpayment arising from official error to contact him/her so s/he can take the complaint to the Parliamentary Ombudsman.

There are likely to have been around 5200 tax credit overpayments to families in Birmingham Yardley constituency since 2003.

John Hemming MP said:

"Over the last few weeks, it has become quite clear that Government Ministers are behaving in a grossly complacent way over the recovery of tax credit overpayments.

"They are recklessly ignoring the clear statement by the Parliamentary Ombudsman that automatic recovery of tax credit overpayments is 'systemic maladministration'.

"The time has come for everyone who has had an overpayment to put pressure on the Government to act fairly and responsibly.

"If you have had an overpayment contact my office and we will look to refer your complaint to the Ombudsman.

"Because of the Ombudsman's statement, it is likely that she will uphold a complaint of maladministration in each and every case, purely on the grounds that the tax credit was recovered automatically.

"You can contact me by email, hemmingj@parliament.uk, by phone, 0121 722 3417, or by post: John Hemming MP, 1772, Coventry Road, Birmingham, B26 1PB."

ENDS

Notes to editors:

The automatic recovery of overpayments is a key feature of the tax credit system. However the Ombudsman has said that the automatic recovery of an overpayment without checking to see if the money is recoverable under their own guidance, is a practice that could well be unlawful, but is, at the very least, maladministration. (For further details, see paragraph 5.17 of her report Tax Credits: Putting Things Right http://www.ombudsman.org.uk/improving_services/special_reports/pca/taxcredits05/tax_c5_overpayments.html

When, the Parliamentary Ombudsman reinforced this statement in evidence to the House of Commons Public Administration Select Committee on 20th October, by making it quite clear that this practice represented 'systemic maladministration', she effectively indicated that she would find maladministration in any complaint sent to her where there had been an overpayment - purely on the grounds that it had been recovered automatically.

A complaint to the Parliamentary Ombudsman has to come from an individual's MP but first an attempt must be made to complain to the Revenue. This can be done either by letter or to the Tax Credit helpline - 0845 300 3900 - open between 8.00am and 8.00pm, seven days a week If the Revenue's response is unsatisfactory, or if there is no response, the complaint can then be referred.

The estimate of the number of families who have had a tax credit overpayment assumes that the level of overpayments in 2003-04 will be repeated in 2004-05 and in 2005-06 to date. Figures on the number of overpayments from 2003-04 come from the Revenue's website: http://www.hmrc.gov.uk/stats/personal-tax-credits/pyts_geog_june05_amdjul05.pdf