Tax credit scheme a "shambles"
November 19, 2004 11:09 AM
Steve Webb MP has demanded an extension to the deadline.
Hundreds, possibly thousands, of low income families across the Stone constituency could be missing out on money owing to them from the government because of they have missed a little known deadline. Steve Webb, Liberal Democrat Shadow Work and Pensions Secretary, has demanded that the deadline be extended.
The Government has admitted that it has cut off their new tax credits to "around 200,000" families many of whom now stand to lose over £1000 a year. For many, it will mean a big cut in the family budget just before Christmas.
The complexity of the new tax credits means that not only circumstance changes have to be reported throughout the year but also that annual reassessments must be completed. The families will lose out on their cash because they have not reported any changes to their income to the Inland Revenue by the 30th September deadline. The complexity of this system means that many families will now be forced to contemplate a cold winter without the money that is owed to them.
The flagship tax credits are paid to lower income families. They are currently paid to around 6 million families.
Branding the situation as a "shambles", Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, said:
"This is the latest episode in the ongoing tax credit shambles. Many families first had long delays in getting cash, next they were overpaid, then the money was clawed back and now it will be stopped altogether.
"Up to 200,000 hard working families on tight budgets in the run up to Christmas face having nothing at all.
"This is the latest farcical twist in the tax credits roller coaster. The Government has to extend the deadline and give families a chance to get their cash."
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