Report shows the shamblolic state of tax credit system - Laws

1.22.13pm BST (GMT +0100) Tue 25th Apr 2006

David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary

Commenting on the Public Accounts Committee's Inland Revenue Standard Report: New Tax Credits, David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary, said "This report shows the shambolic state of the tax credit system and the effect it is having on millions of low income families across Britain.

"It is clear that the Government has yet to get to grips with the magnitude of the problem in the tax credit system. We should by now have moved to a system of fixed awards and clearer award notices.

"The next set of overpayment figures for 2004/05 are likely to show that the overpayments last year were as horrendous and costly as those in 2003/04.

"If this problem is still not sorted out by the middle of this year, then there will be huge pressure on the Paymaster General to resign. The Chancellor himself should also not be allowed to escape responsibility for the social and economic costs of this flawed policy."