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Tax Credits

Volume 447: debated on Monday 12 June 2006

To ask the Chancellor of the Exchequer (1) what procedures his Department has in place to adjust the level of tax credits payable to recipients who are required to repay overpayments; (75517)

(2) whether a family repaying over-paid tax credits can have their 2006 tax credits withheld to contribute to repayment of earlier over-payments;

(3) what measures are in place to ensure that families repaying over-paid tax credits do not experience hardship; and whether repayments are adapted for individual circumstances.

HM Revenue and Custom's Code of Practice 26 “What happens if we have paid you too much tax credit?” explains how overpayments are recovered and what happens if claimants have difficulty repaying an overpayment.

To ask the Chancellor of the Exchequer (1) what his latest estimate is of the tax credit take-up rates for each year since 2003-04; and if he will make a statement; (75785)

(2) what his latest estimate is of the number of people entitled to but not receiving all forms of tax credits.

Estimates of take-up rates for child and working tax credits in 2003-04 are given on the HMRC website at http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-take-up.htm. Tax credit take-up rates reached an unprecedented level in their first year of operation. Some 79 per cent. of eligible families with children claimed child tax credit in 2003-04, while for those earning under £10,000 a year, take-up was 93 per cent. Take-up for low income working families with children is higher than for any previous system of in-work support.