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Lorely Burt MPWorking hard for Solihull |
£16BN IN TAX CREDIT WASTE SINCE 2003
August 11, 2009 11:48 AM
Solihull's MP, Lorely Burt today called for a radical simplification of the Tax Credits System after revealing that £16bn has been lost through overpayments, fraud and error since their introduction in 2003.
New research by the Liberal Democrat has revealed that:
In the five years since tax credits were introduced £16bn has been lost in overpayments, fraud and error.
Almost £1 in every £10 of tax credits paid was subject to fraud and error in 2007-08.
410,000 families missed out on an average of £536 in 2007-08.
Commenting, Lorely said:
"The tax credits system in this country is so complex that it is easily abused by fraudsters, often misunderstood by claimants and regularly mismanaged by officials.
"Almost every week at my surgeries I meet people who have had their fingers burnt by the tax credit system. Families are forced to ride a financial rollercoaster when they have to pay for mistakes made by officials who can't understand the system themselves.
"The Government claim that they are getting to grips with the problem but the reality is that almost £1 in every £10 of tax credits paid is lost through either fraud or error; this is just not good enough.
"Ministers have been promising a simpler tax credit system for years. Unless we see a return to a simpler system of fixed awards then the amounts lost through overpayments, fraud and error will only continue to rise."
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