Solihull MP trips up Paymaster General over tax credits fiasco

11.55.02am GMT Thu 27th Oct 2005

The Paymaster General has been strongly criticised for not knowing what's going on with tax credit repayments, following a question from Lorely Burt, Member of Parliament for Solihull.

Mrs Burt, who sits on the Treasury Select Committee, had asked Dawn Primarolo, the Paymaster General whether she accepted the Financial Ombudsman's verdict of "maladministration in the collection of over-payments" for tax credits.

The Paymaster General Dawn replied: "I don't know what she means… I had no idea she was going to say that… I don't know on what basis it was made…"

Commenting on the Paymaster General's admission David Laws, Liberal Democrat Shadow Work and Pensions Secretary said: "The Ombudsman's statement last week that there was 'systemic maladministration' was perfectly clear. It is astonishing that the Paymaster General does not understand the comments and pitiable that she has not therefore attempted to find out what they did mean."

"Anyone, who has had a tax credit overpayment recovered, however it arose, has suffered maladministration because the money was automatically recovered without an attempt by the Revenue to see if it was recoverable under their own guidance" explained Lorely Burt, MP for Solihull.

"Anyone who has had a tax credit overpayment should therefore complain to their MP and request that their case is referred to the Ombudsman who will most likely find in their favour" Lorely added. "Already, I am investigating the several constituents' cases in this area, and shall continue to campaign on their behalf."

The story was picked up today by a national newspaper, The Times which said that the Government had been forced to back down over the issue.

For further information see http://business.timesonline.co.uk/article/0,,16849-1844929,00.html

Related Link:

Read "Paymaster backs down from drive to reclaim tax credits.".