Labour's tax credit chaos hits Lambeth families

11.20.48am BST (GMT +0100) Tue 20th Jun 2006

The Labour government's tax credits fiasco is hitting Lambeth hard, with new figures revealing that 8,100 families in the borough are having to pay back over £12.5 million worth of tax credits, due to overpayments made by HM Revenue and Customs.

Nick Perry, Lambeth Lib Dem spokesperson on social justice and tackling poverty, has challenged Labour at Lambeth Town Hall to acknowledge the Labour government's failures on tax credits, and to press for an overhaul in the way that tax credits are awarded.

'It is simply unacceptable that, one year on, tax credits in Lambeth are still being overpaid. In some areas, the situation is getting worse not better,' he said.

'Last May, the Paymaster General claimed that the system was working well for the vast majority of families. But new figures show that the Minister is clearly in denial - in actual fact 44% nationwide (over 2.8 million people) received incorrect tax credit payments.

'Dawn Primarolo has known of the systemic failures in the tax credit system for years, and these figures are yet more evidence that too little has been done to rectify them.

'Recent modifications to the system are too little too late.

'Meanwhile the Minister continues to bury her head in the sand and blocks parliamentary scrutiny of this crucial issue.

'It is interesting to see that, just at the same time, Labour has cut down the scrutiny capacity of opposition councillors at Lambeth Town Hall.

'I wonder what, in due course, Lambeth Labour will have to hide from the people of Lambeth?'