22-04-04

Tax credit report confirms case for compensation - Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, today called on the Government to provide compensation to those who suffered from mistakes over tax credits following the publication of a House of Commons report, which condemned the delays faced the situation as "nothing short of disastrous".

The cross-party Public Accounts Select Committee has produced a report that was highly critical of the way the tax credits were introduced last year.  Over 400,000 families faced delays or received incorrect amounts, causing considerable hardship for those on low incomes.

Commenting on the report, Mr Barrett said:

"Over the last 12 months, my post bag and constituency surgeries have been dominated by constituents who have suffered from the Government's tax credit shambles.  As this Select Committee report shows, many families found their finances on a roller coaster of delays, overpayments, recoveries and reassessments.

"However, it would be wrong to think the nightmare is over.  People getting Tax Credits still face constant uncertainty about how much they should be getting. Worse still, with over a million families still to transfer onto the new system, there remains a chance even more people will face difficulties getting the money they are entitled to.

"This report only serves to back up my repeated demand for the Government to compensate those who suffered through no fault of their own. After all, it was often the most vulnerable people in society who did not receive the money they deserved. The Government should now make helping these people a top priority."

ENDS

Note to Editor

• A full version of the Public Accounts Committee report can be found on their website at www.parliament.the-stationery-office.co.uk/pa/cm/cmpubacc.htm