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 Overpayment's - Do Libs Dem's Have The Answer ??
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Rank; Really should become a politician

730 Posts

Posted - 08/04/2010 :  04:16:31  Show Profile Send splashin a Private Message
“Ministers should fix tax credits payments for six months at a time so overpayment's could be avoided, but they refuse to admit the system is anything but perfect.”

A third of tax credit payments are for the wrong amount says Steve WebbSun, 04 Apr 2010

“Families need to know exactly what cash is coming in and when. They should not have to face sleepless nights wondering when the Revenue will come knocking asking for money back." the Liberal Democrat Shadow Work and Pensions Secretary said.

Almost a third of tax credit payments have been for the wrong amount, figures obtained by the Liberal Democrats have revealed.

More than 2m families have been repeatedly overpaid in the 5 years since tax credits were introduced, answers to Parliamentary Questions show.
The number of families repeatedly underpaid was up 42% to almost 1m over the same period.

A staggering 50,000 families have been taken to court in pursuit of overpayment's in the last three years. #8232; #8232;Commenting, Steve Webb said:

“These figures should shame ministers into making changes to the tax credit system.

“Families are put on a financial roller-coaster when they are forced to repay tax credits after continual mistakes. This is not the kind of help they need when times are hard.

“Families need to know exactly what cash is coming in and when. They should not have to face sleepless nights wondering when the Revenue will come knocking asking for money back.
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The only way not to ever be overpaid is to, have the same circumstances, income and marital status throughout your claim.
Which is impossible !!!
The system is designed to overpay.
Lib Dem's need to check out what they claim to be the answer, to many people's financial problems, before they state, what is needed to be done.


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Ali M-W

3558 Posts

Posted - 08/04/2010 :  07:50:40  Show Profile Send Ali M-W a Private Message

Prior to the current system, we had Working Family Tax Credit (or Disabled Persons Tax Credit) and I was told when I first claimed it that I was guaranteed that, whatever happened, my award would be correct for the whole six month period. I was even told by an advisor that I could win the National Lottery and still keep everything paid to me. I was claiming successfully for several years, and nothing ever went wrong for me. The same applied to Sarah (also from Tax Credit Casualties), I believe. Whether we were lucky or quite typical, I don't know - but the Lib Dems do also make a promise that it there are official mistakes, people won't have to repay, and the onus is on HMRC to prove that the mistakes AREN'T their fault rather than on us to prove that not only is HMRC in the wrong, but we checked everything imaginable and that spotting HMRC's errors was impossible. So whilst the Lib Dems could still do more, they are way above the other political parties in terms of their response to the problem - and with David Laws the main identifier of tax credit problems, they have always been.

Hence, in my opinion, Lib Dems as a whole have done most to address the tax credits problem, followed by the Conservatives. Labour, unfortunately, have denied there is any problem and done zilch. I feel Labour doesn't deserve another term in office, and suspect others here feel similarly. Tactical voting may be an answer in some constituencies. I recommend looking at the last election's polling figures and seeing who is most likely to topple the complacent Labour MP from power (whilst ensuring that the BNP don't increase their vote). There is nothing like being booted out of office, if only for a single term, to help a party which has turned away from its loyal supporters to reconnect with its values. A bit of chastisement by the electorate, I believe, will help Labour wake up and smell the coffee.

Morpheus: I'm trying to free your mind, Neo. But I can only show you the door. You're the one that has to walk through it.
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TCC Webmaster

Virgin Islands (United Kingdom)
148 Posts

Posted - 08/04/2010 :  23:08:18  Show Profile Send TCC Webmaster a Private Message
Hi Splashin,

In the letter we received from the Lib Dems, they also stated that there would be no claw-back, and they haven't emphasised this enough in the press release.

What they really mean to say is that awards are fixed for the whole six month period, and an overpayment can't happen even though your circumstances might change.

See You must be logged in to see this link..

At the end of six months, your award is re-calculated based on circumstances and then that award is fixed for 6 months. And so on ...

I know what they mean, but I'll e-mail my Lib Dem MP to make sure that they say it all a bit clearer.

Tax Credits: Designed by an idiot, implemented by morons, managed by incompetents and defended by the whole lot of them.
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