The Public Accounts Committee on Tax Credits revealed that of 47bn paid out in tax credits in the first three years of the system, 5.8bn was overpaid to claimants, often causing hardship to the low paid who were asked to repay money they had spent in good faith. The report criticised the system, saying there had not been an adequate response to the 'unacceptable levels of error and fraud'.
Kate Green, chief executive of Child Poverty Action Group, said, 'The great success of tax credits has been the role they have played in lifting 600,000 children out of poverty. But errors and overpayment recoveries have caused hardship to thousands of families. The Government should put in place a "pause" before recovery of overpayments as soon as possible.
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