Designed to lift families out of poverty and give them a helping hand into employment, the Government's tax credit system now shows ample evidence of doing just the opposite - in many cases plunging people into debt so they cannot afford childcare costs and forcing them to give up jobs to look after their children.
Politicians usually shy away from offering apologies, preferring to offer platitudes that things will improve. However, two damning reports from the Citizens Advice Bureau (CAB) and the parliamentary ombudsman prompted prime minister Tony Blair to say he was sorry, after it was revealed that nearly two million of the six million families claiming tax credits had been overpaid and many were now facing acute hardship as the Inland Revenue sought immediate repayment. In addition to the 2bn in overpayments to be clawed back from 1.9 million people, a further 713,000 people had been underpaid by 500m. A further 800m overpaid in 2003/04 will not be pursued by the Inland Revenue.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here