Tax Credits: Putting Things Right; 3rd Report Session 2005-2006This special report by the Parliamentary and Health Service Ombudsman examines the administration of the Child and Working Tax Credits system, which was introduced in April 2003. The new system, which affects about six million families, is aimed at helping tackle child poverty and encouraging more people into work. The report considers the background to the introduction of the new system; design and delivery aspects; processing errors; communication and accessibility; overpayments; complaints and appeals; and wider tax credits issues. Although the project has been broadly successful given its scale of undertaking, the report focuses on cases of financial hardship caused as a result of the recovery of overpayments of tax credits, particularly for families on low incomes, the core group which the system is aimed at helping. Two key problems are highlighted relating to i) the system's design, based on annual awards with a degree of inbuilt financial uncertainty; and ii) its delivery, using a processing system that is wholly IT-based. The report makes 12 recommendations for actions to improve overpayment recovery processes, complaint handing and Revenue communications with customers, and to highlight key lessons that can be learned across government in the implementation of new policies and systems. |
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amount Annual appeal April ATCs award was correct call centres caused change of circumstances Child Tax Credit childcare costs claimants Code of Practice currently customer's David Varney dealing delays disabled disputed overpayments employer ensure entitlement excess payment in-year excess tax credits explain February finalisation girocheque handling Hansard Helpline adviser Helpline operators HM Revenue households identified in-year adjustments Income Support incorrect Inland Revenue interim payments issues Jobseeker's Allowance lone parent Longbenton manual payments months official error overpaid paid paragraph Parliamentary Ombudsman Practice 26 processing errors reasons received recorded recover recovery of excess recovery of overpayments reduced request resolved result Revenue assured Revenue letter Revenue staff Revenue's sent tax credit claims tax credit customers Tax Credit Office tax credit payments tax credits award tax credits computer Tax Credits Helpline tax credits system technical problems telephone waived wrong wrongly year-end