Lucy Care hits out at government's disgraceful Tax Credit record

11.12.11am BST (GMT +0100) Fri 1st Jun 2007

Local Liberal Democrat Campaigner Councillor Lucy Care has criticised the government's disgraceful tax credit record. This follows the government publishing records showing they overpaid £5.3 million worth of tax credits in the year 2005/6 to residents of Derby. The government also wrongly paid out over £9,000 million across the country between 2003/4 to 2005/6.

During the year 2005/6 over 4,200 families in Derby did not get the tax credit awards they were entitled to. This amounted to a massive underpayment of £2.5 million.

Local Liberal Democrat campaigner Councillor Lucy Care said, "The government's record on tax credits here in Derby is a disgrace. Gordon Brown has presided over a tax credits fiasco that is of his own making.

"The government has overpaid some residents of Derby over £5 million and underpaid others over £2 million.

"So in Derby we have both families losing out on payments they qualify for, and the government trying to claw back money, often from poorer families, following government mistakes.

"The government's shambolic tax credit system leads to uncertainty for many families in Derby as they have no way of knowing what they will receive. The Lib Dems have proposed a simpler system of fixed term awards of six months so that families know what they are getting and get what they are entitled to."