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Welfare Tax Credits: Overpayments

Volume 464: debated on Tuesday 9 October 2007

To ask the Chancellor of the Exchequer how much was overpaid in tax credits to deceased claimants in each of the last three years. (153965)

Around £2 million was overpaid in tax credits in each of the last three years, 2003-04, 2004-05 and 2005-06, where the award ceased due to the death of an applicant.

This can occur due to the time taken to notify HMRC of a death.

HMRC are currently exploring whether added flexibility could be built in to mitigate overpayments in the circumstance.