Citizens Advice: Response to Tax Credit report

Katie Lane, Policy officer, Citizens Advice: "Thousands of families are still being let down by the tax credit system and urgent change is needed to help those experiencing huge problems. People find themselves struggling to repay large overpayments without receiving proper explanations of how they have arisen, and without being given notice before recovery starts.”

“Thousands of families are also being threatened with court action for the recovery of overpayments which they are still challenging or awaiting explanation for, sometimes not even knowing the amount they owe. Some eligible families who have had problems are now reluctant to claim what they are entitled to.”

Citizens Advice is currently running a survey on tax credits on its website at adviceguide.org.uk. In the last financial year (2005/2006) Citizens Advice Bureaux dealt with more than 150,000 problems relating to working and child tax credits.