Citizens Advice launches new guide for people with tax credit clawback problems
25th February 2005
New guidance aimed at helping people sort out problems with tax credit overpayments has been published by independent national charity Citizens Advice.
Citizens Advice Bureaux have dealt with thousands of cases of overpayments resulting from mistakes by the Inland Revenue, or as a result of the Revenue failing to respond to claimants' reports of changes to their circumstances.
Subsequent attempts to claw back overpayments have left families distressed, confused and in serious hardship.
The new fact sheet, explains how people can challenge a decision by Inland Revenue to claw back tax credit overpayments.
It also tells them when they may be entitled to hardship payments, a reduction in the rate at which overpayments are recovered, or getting overpayments written off altogether.
Another section deals with how to make a complaint, including advice on when cases can be referred to the Parliamentary Ombudsman.
The advice coincides with the launch today of a new report on tax credits by the charity One Parent Families. This highlights the hardship experienced by single parents through overpayments being clawed back at a rate that leaves some of them unable to afford to pay essential household bills or buy clothes and shoes for their children.
In most cases the overpayments were the result of errors on the part of Inland Revenue.
Citizens Advice Senior Social Policy Officer John Wheatley said:
"We welcome today's report from One Parent Families. The findings reflect the experience of many CAB clients. We share their concern that while tax credits have the potential to significantly boost family income and reduce child poverty, serious problems in the system mean that instead they are causing hardship for many families.
"Many families are being left to survive on incomes below the most basic benefit levels for months at a time because of the way the system deals with changes in circumstances and overpayments.
"People are being given very little information about their tax credit awards, and what they do get is not clear. This in turn has made errors very difficult to spot and entitlement very hard to understand. We want to see a more sympathetic approach from Inland Revenue to the recovery of overpayments. We are not confident that current decisions are being made fairly.
"The new information on our adviceguide website should help more people deal with problems connected with overpayments. People with tax credit problems can of course also get help from an experienced adviser at their local CAB."
Last updated: February 23, 2007