Measures include a rise from 2,500 to 25,000 in disregarding increases in parental income from one tax year to the next.
The charity, which has been campaigning for reform of the tax credit system, said this would 'hugely reduce the scope for overpayments'.
Head of policy Paul Dornan said, 'We hope that the new system will make life easier for claimants, reduce the scope for errors and restore confidence in tax credits.'
But he added, 'We urge the Revenue to stop automatically clawing back overpayments and give claimants a breathing space in which they can challenge the recovery. The Revenue should also introduce a right of appeal.'
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