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Welfare Tax Credits: Overpayments

Volume 464: debated on Monday 15 October 2007

To ask the Chancellor of the Exchequer how many awards of tax credits were adjusted in-year due to excess payments in (a) 2003-04, (b) 2004-05, (c) 2005-06 and (d) 2006-07; whether excess payments are included in the annual supplement on payments figures; what the average value was of the excess payment; what the total amount recovered in-year was; and how many and what proportion of these cases were disputed. (155939)

The aggregate value of overpayments, the number and the distribution of overpaid awards are published annually in ‘Supplement on Payments’ publications. Figures for 2003-04 to 2005-06, which can be used for calculating the average value of an overpayment in each year, are published on the HMRC website at:

Information on the level of overpaid tax credit awards in 2006-07 will not be available until May 2008.

For information on the number of overpaid awards that have been disputed I refer the hon. Member to the answers given to the hon. Member for Yeovil (Mr. Laws) on 25 June 2007, Official Report, columns 415-16W, and on 7 February 2007, Official Report, columns 1036-37W.

Information relating to the recovery of overpayments of 2003-04, 2004-05 and 2005-06 awards is contained in section 2, table 4, of the Comptroller and Auditor Generals Standard Report in the HM Revenue and Customs 2006-07 accounts, which is available on the HMRC website at:

Information on recovery of overpaid tax credits in 2006-07 will be published in the HM Revenue and Customs 2007-08 accounts, which is due to be released in the summer of 2008.