BURT ATTACKS LOCAL TAX CREDIT FIASCO

6.16.00pm GMT Wed 17th Oct 2007

Solihull's Liberal Democrat MP, Lorely Burt, has today hit out at the government's disgraceful tax credit record after the Citizens Advice Bureau published a new paper on tax credits which reveals the following:

• More than half of respondents reported that they felt that their last award notice was difficult to understand

• 80% of respondents had been overpaid, most of these people said they did not find it easy to understand why. Over a third of respondents were overpaid more than £2,500 and one in ten more than £5000.

• 71% reported that the recovery of overpayments had or was causing their families financial difficulties.

• Most worryingly almost half reported that their experiences of claiming tax credits meant that they were less likely or definitely did not want to claim tax credits in the future.

This comes after Lorely's revelation in May that the government overpaid residents of Solihull £1.8 million, and underpaid others £600,000.

Commenting from Westminster today, Lorely Burt said:

"I congratulate the Citizens Advice Bureau on this excellent analysis of the tax credit system. It is clear from local people that many find it very difficult to understand how tax credits are calculated.

"This report underlines that tax credits form a pivotal part of many local people's income enabling them to meet mortgage payments and childcare costs.

"We must end the chaos and instability of the existing system, which is particularly damaging for families on low incomes.

"The government's record on tax credits here in Solihull is nothing short of a disgrace. It has led to to uncertainty for so many families in Solihull as they have no way of knowing what they will receive.

"I will continue to push for 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."