Tax credits failure causing misery to East Dunbartonshire families

5.31.00pm BST (GMT +0100) Wed 16th May 2007

It was revealed last year that families in East Dunbartonshire are being forced to pay back a total of £1.7 million worth of tax credits

Failures in the tax credits system are causing misery for families in East Dunbartonshire, Jo Swinson has said.

Jo raised the case in Parliament of one East Dunbartonshire resident being forced by the Government to pay back £5,300 of overpayments.

Speaking in a Parliamentary debate on tax credits, she said:

"I sympathise with my hon. Friend's constituent. I wonder what his view is of the case of one of my constituents, who was told that they had been overpaid to the tune of £5,300 and that that had to be repaid within one year.

"Surely by definition families who are in receipt of tax credits cannot find the money required to repay sums of £400-plus a month. That causes huge stress and in some cases makes people ill with worry. The system is so complicated and is letting people down."

Commenting after the debate, Jo said:

"We will soon have a change of Prime Minister, but when it comes to the disarray of the Government's tax credits system, some things never change.

"The clawing back of overpayments, of £5,300 in one year in the worst case I have come across, is a source of major distress to the families and individuals involved.

"Tony Blair's successor must tackle the flaws in the tax credits system, or it will continue to fail families instead of helping them."

Related Link:

Read the full text of the tax credits debate in Parliament