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Families suffering from tax credits breakdown in Solihull

November 30, 2005 3:00 PM

Mistakes in administering the complex family and working tax credit system is causing hardship and uncertainty for many families in Solihull, says the town's MP, Lorely Burt, following information released by the Citizen's Advice Bureau Partnership covering Chelmsley Wood, Shirley and Solihull.

"The three bureaux have been asked to help with 354 cases in the last six months, dealing with the recovery of overpayments ranging from £102 up to £6311. Dealing with these cases alone has taken up over 500 hours of volunteer advisers' time, and reflects the number of requests for help that I am receiving through advice surgeries and into my constituency office," said Mrs Burt.

"I know that CAB volunteers do a fantastic job and I am dismayed to learn that so much of their time is being taken up sorting out the mess caused by Government incompetence.

"In the past credits have simply been stopped to claw back overpayments, leaving families in considerable hardship. Whilst there is now a limit on the cuts in payments that can be recovered from previous years, there are no limits to the adjustments that can be made to payments during a current tax credit year. Citizens Advice Bureaux have seen thousands of families struggling with no tax credits to support their families following overpayments earlier in the current year.

"A recent statement by the Ombudsman makes it quite clear that anyone who has had overpayments automatically clawed back has suffered from maladminstration if there has been no attempt by the Revenue to see if the sum was recoverable under their own guidance. Under these circumstances, claimants should refer their case to the Ombudsman who will most likely find in their favour," added Mrs Burt.

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