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Tax Credits

Volume 456: debated on Wednesday 7 February 2007

To ask the Chancellor of the Exchequer if he will break down the tax credit figures in Tables B13 and B16 of the Pre-Budget Report between the working tax credit, the child tax credit and the pension credit. (111199)

The tax credits figures in the tables referred to do not include pension credit, which is not a tax credit.

The figures are of net payments on a cash basis. The detailed information needed to break these down between child tax credit and working tax credit in a meaningful way is not available, and cannot be obtained except at disproportionate cost.

However, Table 3.1 at Note 3 to the HMRC Trust Statement for 2005-06 shows the full breakdown for HMRC expenditure in that year on an accruals basis. Note that these figures exclude the payments of child allowances in income support and job seeker’s allowance, which are included in the tax credits figure shown in Table B16 (see footnote 1 to that table).

To ask the Chancellor of the Exchequer how many (a) representations and (b) appeals against the credit overpayment recovery decisions by HM Revenue and Customs were received in each month from April 2005 to January 2007; how many appeals were successful in each month; and if he will make a statement. (118753)

For the number of overpayments disputed and remitted in each month up to and including April 2006 I refer the hon. Gentleman to the answer I gave him on 18 July 2006, Official Report, columns 359-60W. For similar information relating to the period May 2006 to August 2006,1 refer the hon. Member to the answers I gave the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Danny Alexander) on 10 October 2006, Official Report, columns 730-31W.

The number of disputed overpayments written off on the grounds of official error in October and November 2006 were provided in the answer I gave the hon. Member for Rayleigh (Mr. Francois) on 8 January 2007, Official Report, columns 428-29W.

Around 800 overpayments were written off in part or in full by the Tax Credit Office because of official error in September 2006 and around 600 in each month December 2006 and January 2007.

The number of tax credits overpayments disputed in each month October 2006 to January 2007 (inclusive) was around:

Number disputed

October 2006

34,000

November 2006

25,500

December 2006

23,000

January 2007

21,500

The figures for overpayments written off do not directly relate to those disputes that were received in the same month. TCO does not separately record whether an overpayment is written off in part or in full.

To ask the Chancellor of the Exchequer what assessment he has made of the adequacy of the operation of the IT systems for tax credits between 30 September 2006 and 31 January 2007; how many payments were made manually in each month over this period; and if he will make a statement. (118885)

The performance of the tax credit system is continually monitored and is proving to be stable.

The number of manual payments made in each month between 30 September 2006 and 31 January 2007 was around:

Number of payments (Thousand)

October 2006

25

November

35

December

20

January 2007

45

The allocation of payments to precise payment dates requires a degree of estimation and are therefore rounded to the nearest 5,000.

To ask the Chancellor of the Exchequer how many notices warning of legal proceedings if payment is not made have been sent to individuals claiming tax credits who are in dispute with HM Revenue and Customs. (117995)

Where H M Revenue and Customs (HMRC) has tried but failed to contact a customer by telephone or where HMRC does not have their telephone number a letter is issued asking for payment and advising that enforcement action may be taken. In January 2007 approximately 30,000 such letters were issued and HMRC is aware that a number of customers have stated that they dispute the debt but were unable to contact the Department by telephone to confirm this due to a heavy volume of incoming telephone calls. The Department has no exact statistics on the number of cases involved but have now stopped issue of the letters and are reviewing the process for telephone call handling.

To ask the Chancellor of the Exchequer whether Mr. Richard Summersgill, the director of the Tax Credit Office, received a bonus in (a) 2004-05 and (b) 2005-06. (119281)

[holding answer 6 February 2007]: Mr. Summersgill became director of Child Benefit and Tax Credits Operations in July 2005. In 2004-05 and 2005-06 he received non-consolidated payments as part of the senior civil service pay scheme in connection with previous duties.

To ask the Chancellor of the Exchequer pursuant to the letters from HM Revenue and Customs of (a) 22 November 2006 (ref. HMRC 2006/08 006309KH) and (b) 22 January 2007 (ref. HMRC 2007/01 005703KH) to the hon. Member for Totnes, on the case of constituent Oliver Tringham of Dartington, what technical problem has prevented the settlement of Mr. Tringham’s tax credit claim; what steps he is taking to ensure the problem is tackled; and what the reasons are for the time taken to conclude this matter. (119436)

I have asked HM Revenue and Customs to urgently investigate Mr. Tringham’s case. Tax Credit Office will write to the hon. Member with full details of their findings.

To ask the Chancellor of the Exchequer on what date he expects HM Revenue and Customs to introduce the automatic limits on in-year recovery of overpaid tax credits which were announced in the 2005 pre-Budget report; and if he will make a statement. (118902)

I refer the hon. Member to the statement I made on 6 December 2006, Official Report, column 14-15WS.