Errors in tax credit payments ‘a national scandal’

The scale of overpayment of tax credit as a result of continuing errors by the Inland Revenue is widespread and leading to real human suffering, a leading member of an independent advice network has said.

Adviceni, the membership organisation for the independent advice network, recently carried out a web-based consultation aimed at gathering the views of everyone who had in any way been affected by tax credits overpayments.

After only a week the consultation uncovered “shocking evidence of widespread errors leading to worrying times for vulnerable families, through no fault of the their own”.

Director of adviceni, Bob Stronge, said: “The scale of the response to our consultation has been overwhelming, and is proof positive of the fact that the overpayment of family tax credit and working tax credit is nothing short of a national scandal.

“Some of our advice centres are simply overwhelmed with the numbers of people who are having to deal with a situation where they are overpaid by thousands of pounds, and then telephoned by brusk officials, demanding immediate repayment.

“If the consultation continues to uncover overpayment instances at this rate, I have no doubt that the Inland Revenue will have a very serious case to answer.”

Some of the instances of overpayment already uncovered include one person who was over paid by £6,000 and received an phone call to his workplace telling him he had to pay it back immediately.

One woman who was also contacted at work and told that she had seven days to pay back £3,200. This was exacerbated by the fact that she had queried an initial payment of £1,600 into her account, and was told that the money was hers and she was free to spend it as she pleased.

“Our advice centres are being overwhelmed by the scale of the work being generated by this issue, but there are no more resources coming from government to deal with the situation,” Mr Stronge added.

“Nevertheless, because of the hardship being caused by the overpayment issue, we have decided to give everyone the opportunity to log on and highlight their tax credit overpayment experiences. This consultation exercise runs for four weeks, after which a report will be written and presented to key decision makers. I would urge everyone to log on and have your say,” he concluded.

To take part in the tax credit overpayment consultation, visit www.adviceni.net.

(MB/SP)