Tax credit shambles goes on and on - Sollitt

6.23.32pm BST (GMT +0100) Sun 4th Jun 2006

Cllr Steve Sollitt, Liberal Democrat Campaigner for Southampton Test has today called for a total overhaul of the way tax credits are awarded after new figures revealed that many families across the city have been overpaid and some have been underpaid by the shambles system of tax credits.

Steve said " It is simply unacceptable, that one year on, the problem still exists, families do not know where they are with the present mess and the situation is getting worse not better.

"Last May, the Paymaster General claimed that the system was working well for the vast majority of families. But today's figures show that the Minister is clearly in denial - in actual fact nationwide 44%, over 2.8 million people, received incorrect tax credit payments.

"The Minister has known of the systemic failures in the tax credit system for years and today's figures are yet more evidence that too little has been done to rectify them. Recent modifications to the system are too little too late.

"Meanwhile Dawn Primarolo continues to bury her head in the sand and blocks parliamentary scrutiny of this crucial issue. New ministerial leadership is now needed to introduce a radical overhaul of the way tax credits are administered."